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

Singapore – Bitcoin surpassed US$45,000 for the first time in nearly two years as anticipation of approval of an exchange-traded fund (ETF) investing directly in the biggest token intensified.

The cryptocurrency jumped as much as 4.3 per cent to its highest level since April 6, 2022, and traded at US$45,355 as at 12.25pm Singapore time. Other tokens also advanced, with Ether, the second biggest, rising as much as 2.6 per cent.

Bitcoin has risen more than 20 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 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.

Options traders had been betting on Bitcoin hitting US$50,000, riding on the spot ETF optimism.

A major correction is unlikely given the broader bullish sentiment and the upcoming halving, said Ms Cici Lu McCalman, founder of blockchain adviser Venn Link Partners, referring to a process that cuts the quantity of Bitcoin that miners receive per block reward in half.

“I think traders would need nerves of steel to short BTC,” she said.

The halving – sometimes referred to as halvening – is planned for April and happens once every four years or so. The coin hit records after each of the last three halvings.

Bitcoin’s near 160 per cent rebound in 2023 partially repaired some of the damage caused by a precipitous 2022 crash that reverberated around the crypto industry.

The token outperformed global stocks and gold over the period, but remains below its 2021 pandemic-era record of almost US$69,000. BLOOMBERG