Bitcoin has reached a significant milestone, surpassing $45,000 for the first time since April 2022

Bitcoin reached a milestone on Monday, surpassing $45,000 for the first time since April 2022 amidst the ongoing surge in the cryptocurrency market. The world’s largest digital currency achieved an intra-day high of $45,519.52 at approximately 10:30 p.m. ET, marking its highest level since April 5, 2022. This breakthrough above the $45,000 threshold is the first since that date.

As trading resumed on Tuesday, Bitcoin extended its rally, reaching an intra-day peak of $45,913 before retracing some gains. However, it continued to trade around $45,600, reflecting a 7% increase for the day. The sustained upward movement follows a strong performance in 2023, during which Bitcoin’s value surged by 152%, fueling expectations for further significant gains.

Market enthusiasm is partly driven by speculation that the U.S. may approve the first Bitcoin exchange-traded fund (ETF), providing a vehicle for investors to track Bitcoin’s price without directly owning the cryptocurrency. This prospect is particularly appealing to institutional investors.

In addition, 2024 will witness Bitcoin’s “halving,” a technical event reducing rewards for cryptocurrency miners by half. This event historically precedes substantial price surges. The anticipation of these developments contributes to the positive sentiment surrounding Bitcoin.

Other cryptocurrencies also experienced gains overnight into Tuesday, with Ether trading around $2,405, reflecting a 4.5% increase, and Solana surging by 11% to approximately $115 as of 05:39 a.m. ET, according to CoinDesk data.