Bitcoin breaks $40,000 amid US interest rate cut expectations

Bitcoin has broken above $40,000 for the first time in 2023. This, due to a broad enthusiasm about US interest rate cuts and also as traders are anticipating approval of US stockmarket traded bitcoin funds.

Bitcoin Rally

At $40,210 Bitcoin hits its highest since April 2022 on Sunday trade. It was steady at $40,011 in thin trade early in the Asia day on Monday. Despite the alleged crypto winter, bitcoins has more than doubled this year.

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Expectations on US Federal Reserve to pause the rate hike has propelled riskier investments and other interest-rate sensitive assets, such as gold to rally over the last few weeks. Reports of US Securities and Exchange Commission not appealing a court ruling that found the agency had been wrong to reject an exchange-traded fund application from crypto firm Grayscale Investments emerged in October. This have also driven the bitcoin prices up.

However, Bitcoin still remains below its 2021 record highs of $60,000