Bitcoin Surges to 18-Month High Amidst Risk Appetite and Powell's Remarks

Bitcoin reached its highest value in 18 months, hitting $38,834. Investors embraced more risk in anticipation of insights from Federal Reserve Chair Jerome Powell on potential interest rate changes. This surge marked Bitcoin's peak since May 5 of the previous year, preceding the TerraUSD stablecoin ecosystem collapse.

European stocks gained ground, the dollar dipped, and US futures edged higher. Powell's upcoming speech at Spelman College in Atlanta fueled market anticipation. Cryptocurrencies like Ether and Solana also saw over 2% increases. The positive sentiment extended to cryptocurrency-related stocks, with Coinbase Global Inc. up by 3.5%, and Marathon Digital Holdings rising by 4% in premarket trading.

Markus Thielen, Head of Research and Strategy at Matrixport, expressed optimism about the crypto market, citing expectations of interest rate cuts due to declining inflation and geopolitical factors. He anticipates Bitcoin reaching new highs in 2024 with robust macro support.

Bitcoin's impressive 133% gain this year has outpaced traditional sectors, reflecting investors' preference for riskier assets. Traders are hopeful about potential approval for the first US Bitcoin-linked exchange-traded fund by the Securities and Exchange Commission. Recent settlements, including one between US authorities and Binance Holdings Ltd., have contributed to a positive market outlook.

Also Read: Bitcoin Breaks Records: Surge in Hash Rate Points to a Stronger Network Ahead