Bitcoin rising, reaching the highest level this year.

Bitcoin Soaring to New Heights Achieves Peak for the Year

On December 1st, Bitcoin rose by 2.87% to $38,834, reaching its highest level this year. Other digital assets tracked by Bloomberg also saw an increase in price. This surge pushed Bitcoin to its highest point since May 5th of last year.

Bitcoin unexpectedly made a comeback in the midst of the volatility of 2022, defying the skeptics who predicted the demise of digital assets. After reaching a historical high of nearly $69,000 at the end of 2021, Bitcoin plummeted by 64% in 2022 due to industry scandals and bankruptcies of some companies.

The expectation that the U.S. Securities and Exchange Commission (SEC) will approve Exchange-Traded Funds (ETFs) directly investing in Bitcoin after a decade of consideration has boosted the cryptocurrency in recent times.

“With more signs indicating that a spot Bitcoin ETF is seemingly about to launch in the United States, market sentiment is clearly bullish,” said Darius Tabatabai, co-founder of the decentralized exchange Vertex Protocol.

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A U.S. federal appeals court officially supported Grayscale Investments LLC’s launch of a Bitcoin-based ETF in late October.

Tabatabai stated, “The bulls are essentially making a comeback, bringing some much-needed optimism to the market, which has been rather dull for a while.”

Matthew J. Maley, Chief Market Strategist at Miller Tabak + Co., LLC, said that geopolitical tensions also fueled the surge. “I believe investors feel that the increasing global geopolitical hotspots raise the possibility of cryptocurrencies becoming important currencies faster than previously expected,” Maley said.

Cathie Wood previously stated that she would not hesitate to bet on Bitcoin instead of gold or cash as a hedge against the risk of deflation in the next ten years.

The ARK Investment Management leader reiterated her view that a period of price declines is imminent, supported by new technologies such as artificial intelligence, electric vehicles, robotics, genome sequencing, and blockchain. She has held this view since 2021, despite the market’s focus on escalating inflation risks.

When asked on the Bloomberg Merryn Talks Money podcast which of the three assets mentioned above she would hold for ten years, Wood said, “Bitcoin without a doubt. Bitcoin is a tool that hedges both inflation and deflation, there is no counterparty risk, and institutions hardly participate in it.” It is the “digital gold.”

Wood is one of the most optimistic investors in cryptocurrency, and she expects this type of asset to benefit from the development and innovation of new technologies. She previously predicted that Bitcoin could surpass $1 million in the next ten years. Currently, the price of Bitcoin is around $35,000, about half of its peak value in 2021.

Wood also stated that she expects artificial intelligence and Bitcoin to merge, achieving microtasks and division of labor on a global scale in ways that we cannot even imagine now.

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