Bitcoin (BTC), the biggest digital asset extended its lead as it went on to breach the crucial $38,800 price level, a new 2023 high. BTC price is up by a massive 132% on the year to date (YTD) basis. However, On-data suggests that with this surge Bitcoin profitability reached its highest level since 2021.
Bitcoin profitability peaks
As per the data provided by IntoTheBlock, more than 80% of Bitcoin addresses are currently profitable. This marks the highest figure since December 2021 when BTC price soared above a remarkable $50,000.
Bitcoin price is up by around 12% in the last 30 days. BTC is trading at an average price of $38,594, at the press time. Its 24 hour trading volume is 11% to stand at $21.7 billion. It is important to note that Bitcoin has re-added more than $434 billion into its market over the past year. BTC’s market cap stood at around $328 billion on December 2, 2022, however, it now stands at around $760 billion.
The crypto market is now speculating on the possibility of Bitcoin price to reach $40k. The optimism surrounding BTC’s surge is directly fueled by the anticipation of the US SEC green flagging its inaugural spot Bitcoin exchange-traded funds (ETFs). However, expectations of Federal Reserve interest-rate cuts in the coming year are another major reason.
$40k next for BTC?
According to a Bloomberg report, Fiona Cincotta, a senior financial markets analyst at City Index, highlighted the pivotal role of securing approval for spot Bitcoin ETFs in propelling BTC to the coveted $40,000 mark. The recent moderation in Bitcoin’s momentum, partly attributed to significant fluctuations in equities and other assets is drawing investors’ attention, hasn’t dampened the overall positive sentiment in BTC .
Bloomberg Intelligence anticipates a batch of US spot Bitcoin ETFs securing approval from the Securities & Exchange Commission (SEC) by January, underscoring the prevailing optimism. While potential challenges like a reset in interest rate predictions or unexpected issues with the ETFs could pose risks, the current sentiment remains bullish.
