After a bear market in 2022, Bitcoin hit its low at the beginning of 2023 and has since recovered, regaining most of its losses. The anticipation of a spot Bitcoin ETF and the upcoming Bitcoin halving are fueling positive market sentiment, with resistance levels at $45,000 being a focal point for further price movements.
Investor attention was fixed on the U.S. Securities and Exchange Commission (SEC), with expectations of an ETF approval in early January. Despite the consolidation of Bitcoin gains after a drop below $30,000, the market showed resilience against potential negative news, such as Binance CEO Changpeng Zhao’s resignation following legal issues.
Cryptocurrencies have withstood various challenges, including high interest rates globally, with Bitcoin maintaining its momentum and reaching up to $45,950. For those who invested $1,000 in Bitcoin at the start of 2023, they would have seen a significant return, as Bitcoin rose from $16,327 to over $43,000, turning the investment into $2,620.
Bitcoin kicked off 2024 with a notable rise, surpassing the $45,000 level for the first time since April 2022 and reaching a 21-month peak of $45,950, marking a 156% gain from the previous year and its strongest annual performance since 2020.
At the time of writing, Bitcoin trades around $43,689, having retracted from $45,950 but still gaining over 3% in the last week. Despite rising price expectations, trading volume has decreased by 30% in the last 24 hours, with overall market volume slightly down at just under $860 billion, as whale activities continue to increase on-chain.
