Bitcoin surges above $40,000 for the first time in 19 months

Sweta Gupta
Sweta GuptaDec 04, 2023 | 14:52

Bitcoin surges above $40,000 for the first time in 19 months

Since mid-October, Bitcoin has seen a 50% rally, indicating a shift away from the negative trends of 2022. (Photo Credits: Getty Images)

Bitcoin has achieved a significant milestone by surpassing $40,000, marking its highest value in the past 19 months.

This surge is driven by positive expectations of a Federal Reserve rate cut and increasing demand from ETFs (exchange-traded funds).

The cryptocurrency industry is eagerly anticipating the approval of US spot Bitcoin ETFs, with major players like BlackRock among the applicants.

Additionally, the upcoming Bitcoin halving, where miner rewards are halved, is anticipated to occur next year.



  • On Monday, Bitcoin, the world's biggest cryptocurrency, reached $41,522, marking its highest value since April 2022.
  • This positive trend appears to break away from the gloom that had affected crypto markets following the collapse of FTX and other crypto businesses in 2022.
  • Since mid-October, Bitcoin has experienced a 50% rally, signaling a departure from the negative trends seen in 2022 and early 2023, as reported by Reuters.
  • Microstrategy, a significant Bitcoin investor, recently disclosed its purchase of an additional $593 million worth of Bitcoin in November.
  • Concurrently, riskier investments and assets sensitive to interest rates, such as gold, have also demonstrated strong gains.
  • This surge is due to market speculation that the US Federal Reserve has concluded raising interest rates and might commence cutting them in early 2023.

In October, reports indicated that the US Securities and Exchange Commission (SEC) would not appeal a court ruling, implying that the rejection of a Bitcoin exchange-traded fund (ETF) application was incorrect.


This news has heightened expectations for the eventual approval of a spot Bitcoin ETF. Such an ETF could offer access to crypto for previously cautious investors, ushering in a new wave of capital.

Ether, the cryptocurrency associated with the Ethereum blockchain network, also reached a 1-1/2 year high on Monday, hitting $2,253.

It's noteworthy that both Bitcoin and Ether are still below their record highs from 2021, which were above $60,000 and $4,000, respectively.

What is spot Bitcoin ETF?

  • A spot Bitcoin ETF is akin to other ETFs but directly invests in Bitcoin.

  • This is a first for the US, where existing ETFs center on Bitcoin futures instead of the current market price.

  • Consequently, investors gain direct exposure to Bitcoin's real-time value.

  • Bitcoin halving happens every four years, reducing the rewards miners receive by half. It's a crucial aspect of limiting Bitcoin's total supply to 21 million tokens.


Bitcoin has exhibited historical surges after each of the last three halving events.

After the crypto crash in 2022, Bitcoin encountered challenges when the US took action against Sam Bankman-Fried for fraud at FTX. Furthermore, Binance and its founder Changpeng Zhao faced fines.

Last updated: December 04, 2023 | 14:52
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