Bitcoin rises above $45,000 for first time since April 2022 on ETF approval hope

SINGAPORE – Bitcoin surpassed US$45,000 for the first time in nearly two years as anticipation of an approval of an exchange-traded fund (ETF) investing directly in the biggest token intensified. The cryptocurrency jumped as much as 4 per cent to its highest level since April 6, 2022, and traded at US$44,844 as at 9.45am Singapore time. Other tokens also advanced, with Ether, the second biggest, rising as much as 2.6 per cent. Bitcoin has risen more than 15 per cent since the start of December as a Jan 10 deadline for the US Securities and Exchange Commission to give its blessing for a spot ETF Bitcoin draws closer. There is a fear of missing out among some traders in the United States and Europe ahead of the looming approval and investors have started “buying on Jan 1, first thing New Year’s morning”, said Mr Hayden Hughes, co-founder of social-trading platform Alpha Impact. Traders are expecting Bitcoin to touch US$50,000 soon, riding on the spot ETF optimism. Bitcoin’s resurgence in the past 12 months has also been driven by a broader risk-on sentiment fuelled by expectations of declining interest rates in the United States. The rally has partially repaired the damage from a precipitous 2022 crash that reverberated around the crypto industry. The token remains below its 2021 pandemic-era record of almost US$69,000. BLOOMBERG