Bitcoin tops $40,000 for first time in 2023 on ETF hopes, bets on Fed cuts

Bitcoin crossed the $40,000 mark for the first time this year on Monday in Asia, bolstered by anticipation of a bitcoin exchange-traded fund approval and bets on U.S. interest rate cuts.

The world’s largest cryptocurrency surged more than 5% on Monday to a 19-month high, and was trading at $41,608 as of 10:00 am ET after briefly topping $42,000 earlier in the day, based on Coin Metrics data. This is the first time since May 2022 that bitcoin has breached the $40,000 level, according to LSEG. Bitcoin is now up more than 145% from the start of the year.

This comes after scandals rocked the market including the collapse of crypto exchange FTX in November last year. Last month, FTX founder Bankman-Fried was found guilty of all seven criminal charges brought against him related to the collapse of his crypto empire.

“Now that $40,000 has been revisited for the first time in almost 19 months, $48,000 and $52,000 look to be the next significant lines in the sand,” said Antoni Trenchev, co-founder of digital asset company Nexo.