Gold prices broke a new all-time high during the Asian session on Monday, December 4, surpassing the significant level of $2,100. Meanwhile, Bitcoin (BTC) also rose above $41,000 for the first time in 19 months.
BTC/USD (blue) vs. gold price (orange) Source: Tradingview
Bitcoin price breaks $40,000… and $41,000
Bitcoin has triumphantly returned to the $40,000 threshold, a level not seen since the April 2022 highs. This included a quick 2% jump in 24 hours, marking a 19-month high for the cryptocurrency.
Wild Tailwind for Bitcoin:
✅ New ATH in gold
✅ abolish the central bank
✅ Worst bond crash in 250 years
✅ BTC ETF on the threshold (?)
✅ Real Estate Tremors
✅ Consumer tech is weakening
✅ Banks are shaking
✅ The Fed is preparing for the pump
✅ Halving in April
✅ Bitcoin L2 is here— Tuur Demeester (@TuurDemeester) December 4, 2023
Additionally, Bitcoin is up over 140% since the beginning of the year.
Findings from Matrixport research director Markus Thielen point to an even better future. Given the historical trends of post-bear bull cycles and the upcoming Bitcoin halving, Bitcoin is predicted to be above $60,000 by April next year and up to $125,000 by the end of 2024.
Related: BTC price models suggest a target of $130,000 after the Bitcoin halving in 2024
Such predictions are based on the historical pattern of price increases before halving events, with an expected increase of over 200%.
“On the Eve of a Spot Bitcoin ETF”
The speculative winds are further fueled by the possible approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
With 13 bidders, including industry giants such as BlackRock and Grayscale, anticipation is growing for a decision by the Securities and Exchange Commission (SEC).
Bloomberg ETF analysts see a high probability that all pending bids will be approved simultaneously by January 10, which would not only usher in a new era of institutional participation and investment in Bitcoin, but would also likely cause a rise in BTC price .
“It is very likely that we are on the verge of a Bitcoin spot ETF,” commented Bitcoin analyst Willy Woo on X about the new highs in gold prices. “The first commodity ETF was SPDR Gold Trust. It offered investors an easy way to access gold in their portfolio.”
Woo added:
“At its inception, gold enjoyed an 8-year rally without a single down year between 2005 and 2012.”
Therefore, Bitcoin’s recent rise above the psychological $40,000 mark reflects bullish market sentiment, fueled by the likely approval of a spot Bitcoin ETF in January and the prospect of regulatory progress in general. Meanwhile, the Bitcoin halving is only expected to provide additional tailwind to the BTC price over the next five months.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.