Bitcoin’s price has gained 3.5% in the last 24 hours to approximately $38,300, reaching its highest level since May 5, 2022, when cryptos sank into a devastating bear market. Making everyone wonder: is Bitcoin dead? Or not. The largest digital asset has resumed a rise that has sent prices up by more than a third since early October, reversing a selloff earlier this week after crypto exchange giant Binance and its CEO admitted to anti-money-laundering offenses.
When Bitcoin breaks through $38,000, it’s only a matter of time before it breaks through $40,000, according to Antoni Trenchev, co-founder and managing partner at crypto lender Nexo, but questions remain about the need for a healthy pullback given we haven’t seen a daily double-digit decline in Bitcoin since August 17.
Several reasons have contributed to the spike in Bitcoin values, including expectations that US authorities would soon authorize the first spot Bitcoin exchange-traded fund (ETF), ushering in a new wave of investor interest. Rising hopes that the Federal Reserve would cut interest rates many times next year have bolstered tokens and other risk-sensitive assets, with the Dow Jones Industrial Average and S&P 500 also marching higher recently.
Furthermore, experts view tight token supply dynamics and seasonality as sources of optimism for further increases, with Bitcoin, like equities, likely to do well at the end of the year.
Trenchev further stated that what is particularly promising for Bitcoin right now is that 70% of on-chain supply has been inactive for a year, a new record that shows us long-term Bitcoin investors are steady in their decision, and nothing appears to change their commitment until prices are substantially higher. Bitcoin is on course for its third consecutive monthly increase, and the last time it gained from September to November in 2015 and 2016, it went on to have another strong month in December, making the answer to the question: is Bitcoin dead?
Beyond Bitcoin, Ether, the second-largest cryptocurrency, rose 3.5% to $2,120. Smaller tokens or altcoins were also increasing, with Cardano up 4% and Polygon at 3%. Dogecoin gained 4%, while Shiba Inu gained 3%.