Bitcoin hits 18-month high as traders bet on improving macro picture and bullish forecasts push crypto higher
- Bitcoin climbed above $38,161 on Wednesday, its highest mark in 18 months.
- In a bullish signal for investors, market expectations have ramped up for Federal Reserve interest rate cuts in 2024.
Bitcoin rose 1% on Wednesday to reach $38,168, its highest level since April and May 2022, when prices were collapsing amid a brutal bear market.
The world's largest cryptocurrency by market capitalization has climbed more than 10% in November, supported by market expectations for the Federal Reserve to begin cutting rates in 2024.
Easing monetary policy should be more a bullish tailwind for digital assets, as investors typically pull back from riskier investments when interest rates climb.
In 2023 so far, bitcoin is up about 130%, and Wall Street is bullish that more big gains are on the way.
Standard Chartered said Tuesday that bitcoin is on track to hit $100,000 by the end of 2024, reiterating an earlier forecast. Meanwhile, technical analyst Katie Stockton said bitcoin could be poised for another surge in the coming weeks.
"Bitcoin would resolve its consolidation phase higher with a move above $38,000, which would act as a catalyst for a test of $42,200 resistance," Stockton told clients earlier this week.
Crypto traders are also still hoping to see the Securities and Exchange Commission approve a spot bitcoin exchange-traded fund. Institutional players including Fidelity and BlackRock have lined up for the regulatory greenlight, while Grayscale earlier this year won a key legal battle against the SEC.
Another bullish event on the horizon is the April 2024 halving, which is when the amount of bitcoin produced via mining is cut in half.
In the 12 months following the prior three halvings in 2012, 2016, and 2020, bitcoin skyrocketed 8,069%, 284%, and 559%, respectively.