Bitcoin achieved a 21-month high at £45,532 ($57,370) showcasing a 156% gain in 2023, marking its most robust annual performance since 2020.
On 2 January 2024, it stands at £45,727, up 3.5%, though still a considerable distance from its all-time high of £69,000 recorded in November 2021.
Ether also saw a 2.6% increase to £2,414 on 2 January, following a 91% surge throughout 2023.
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In August 2023, Bitcoin logged its biggest one-day drop since November 2022. The cryptocurrency fell 7.2% on the 17th August before hitting a two-month low on the 18th August.
In US premarket trading, crypto-related stocks mirrored the positive trend, with Riot Platforms and CleanSpark experiencing gains ranging from 11.3% to 14.8%.
Investor attention is centred on the potential approval of a spot bitcoin ETF by the US Securities and Exchange Commission (SEC).
The SEC has rejected several applications, citing concerns about market vulnerability to manipulation. However, recent indications suggest a more favourable stance, with expectations of a decision in early January.
The positive momentum in the crypto market is further fuelled by increasing speculation that major central banks may reduce interest rates in the coming year.
This optimism contrasts with the gloom that enveloped crypto markets in 2022, following the collapse of FTX and other crypto-related businesses.
As 2024 unfolds, the outlook remains optimistic for crypto markets, with Bitcoin historically performing well during US election years.
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