The
price
of
Bitcoin
(BTC)
hit
$40,000
on
Sunday
for
the
first
time
since
early
May
2022,
while
Ethereum
(ETH)
rose
past
$2,200
amid
a
broader
–
if
subdued
–
rally
in
the
crypto
markets.
Bitcoin’s
price
had
been
toying
with
the
$40,000
level
in
recent
days,
but
finally
breached
it
Sunday
to
trade
above
$40,600
as
of
press
time,
according
to
CoinDesk
Indicies
data,
a
24-hour
rise
of
about
3%.
Ethereum
was
trading
hands
at
$2,205,
a
similar
percent
rise
over
the
past
24
hours.
Most
other
top-10
cryptocurrencies
by
market
capitalization
marked
smaller
gains,
though
BNB
coin,
a
token
affiliated
with
the
Binance
exchange,
was
down
about
0.1%
over
the
past
day.
The
price
of
the
world’s
largest
and
oldest
cryptocurrency
fell
below
$40,000
in
April
2022,
but
has
been
rallying
over
the
past
few
months
largely
due
to
seemingly
dovish
comments
from
U.S.
central
bankers
and
hopes
that
a
spot
bitcoin
exchange-traded
fund
(ETF)
may
be
approved
to
launch
in
the
country.
Ethereum
had
similarly
not
traded
hands
above
$2,200
since
May
2022,
though
it’s
come
close
a
few
times.
Bitcoin
holders
withdrew
37,000
BTC
between
Nov.
17
and
Dec.
1,
suggesting
they
were
taking
direct
custody
of
their
coins,
CoinDesk
reported
earlier
this
week.
The
move
comes
days
after
gold
futures
reached
a
record
high
$2,087
after
Federal
Reserve
chairman
Jerome
Powell
said
interest
rates
are
now
well
into
restrictive
territory.
“The
market
is
increasingly
expecting
a
rate
cut
in
the
coming
year
and
investors
are
increasingly
bullish
on
the
outlook
of
Bitcoin
ETF
applications
by
some
of
the
biggest
names
in
asset
management,”
wrote
Lucy
Hu,
Senior
Analyst,
Metalpha,
in
a
note.
“This
is
an
official
statement
of
a
bull
run
and
the
price
could
see
more
upticks
in
the
coming
weeks.”
Powell’s
comments
played
into
the
narrative
that
the
tightening
cycle
has
peaked,
pushing
bond
yields
lower.
“Crypto,
on
the
other
hand,
has
been
moving
nicely
higher,
along
with
Gold,
on
the
back
of
lower
yields,”
crypto
data
provider
Amberdata
said
in
a
newsletter
Sunday.
“Bitcoin
has
been
eager
to
jump
higher,
even
without
the
Spot
ETF
catalysts
headline
hitting
the
wires,
the
market
is
looking
to
get
long,”
Amberdata
added.
Traders
have
loaded
up
on
topside
option
plays
in
recent
weeks,
betting
on
bitcoin’s
eventual
rise
to
$45,000
by
the
end
of
March
2024.
The
week
ahead
will
bring
U.S.
ISM
services
PMI
data
and
non
farm
payrolls
for
December.
A
strong
NFP
figure
might
result
in
unwinding
of
Fed
rate
cut
bets
for
2024,
slowing
BTC’s
ascent.