Bitcoin hits 21 month high, sees 154% growth in 2023

Bitcoin hit US$45,000 on Jan 1 for the first time since April 2022. This is because the world's largest and most popular cryptocurrency started in 2024 by considering accepting a Bitcoin wallet trading site. It hit a 21-month high of $45,488 and is up 154% in the past year, its best performance since 2020. It is up 2.6% at $45,344 but below the all-time high of $69,000 in November 2021.

Ether, a currency linked to the Ethereum blockchain network, rose 1% to US$2,376 on Jan 2. Investor attention is focused on whether US securities regulators approve a spot Bitcoin ETF, opening up the Bitcoin market to millions more.

The US Securities and Exchange Commission (SEC) has rejected several proposals to launch Bitcoin ETFs in recent years, citing the cryptocurrency market's vulnerability to manipulation. However, indications have grown recently that regulators may be ready to approve some of the 13 proposed Bitcoin ETFs, with a decision expected in early January.

An increase in funding as major central banks cut interest rates this year also benefited cryptocurrencies, helping to shake off the gloom that had settled over crypto markets following the 2022 FTX collapse and other cryptocurrency trading failures.

"The crypto market is set to experience notable growth this year, with key influencing factors being the influx of investment funds from spot ETFs, Bitcoin halving, and a more accommodative monetary policy both in the United States and worldwide," said Jupiter Zheng, partner of liquid funds at HashKey Capital.