The price of Bitcoin soared above US $40,000 ($60,430) yesterday, hitting its highest level in 18 months as investors look ahead to a lower interest rate environment and key regulatory approvals that could make the crypto asset more mainstream.
The world's most popular cryptocurrency was up more than 5 per cent over the past 24 hours. At 8 am AEDT, the cryptocurrency had hit $41,790.
On Friday, a surge in investor activity followed remarks from US Federal Reserve Chair Jerome Powell, who stated that the central bank's policy had entered "well into restrictive territory." Some interpreted these words to imply an end to interest rate hikes, although Powell emphasized that the Fed remained ready to implement rate increases if deemed necessary.
Antoni Trenchev, co-founder of the crypto lender Nexo, remarked, "Bitcoin surpassing $40,000 lacks the excitement of its initial breakthrough in January 2021. However, considering its value a year ago at $15,500, it represents a significant upswing for an asset that appeared dormant."
The market rally also signifies investors' eagerness to distance themselves from the recent controversies surrounding cryptocurrencies. This renewed momentum suggests a turning point for the asset class, marking a departure from the challenges and scandals that have recently impacted the crypto space.
