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Bitcoin’s Strong Comeback: Heading Toward $100,000 Mark?

The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)
The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)
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Bitcoin’s Strong Comeback: Heading Toward $100,000 Mark?

The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)
The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)

Bitcoin, the top cryptocurrency, has bounced back strongly, recovering all losses since the crypto market downturn in May 2022. Today, it’s steadily nearing its record high of $64,000, last seen in November 2021.

With investors rushing into cryptocurrency exchange-traded funds (ETFs), Bitcoin's price is rising rapidly, bringing it back to early 2021 levels.

The value of Bitcoin, the biggest cryptocurrency by market cap, jumped 3.4% to $62,205 after briefly touching $63,933 overnight Thursday, its highest level since late 2021.

This rise shows renewed confidence in the cryptocurrency market, helped by ETFs making crypto trading easier for investors.

US market sentiment towards Bitcoin is shifting positively, with big investors continuing to buy Bitcoin. This suggests long-term optimism and makes Bitcoin more appealing to investors looking for steady gains.

This surge is a big moment for Bitcoin and could lead to more growth in the future. It also shows Bitcoin is gaining acceptance as an investment.

Bitcoin holders expect the price to keep rising, possibly exceeding $69,000.

As Bitcoin hits new highs, 2024 is predicted to be its big year, with expectations reaching $100,000.

Bitcoin surged notably after approval was granted for cryptocurrency exchange-traded funds (ETFs) focused on immediate Bitcoin.

Optimism grew when the US Securities and Exchange Commission greenlit 11 of these funds in mid-January, allowing institutional investors to join the Bitcoin market, leading to increased demand and significant price rises.

These funds allow institutional investors to trade Bitcoin at its current price. Previously, Bitcoin ETFs were limited to trading futures contracts, complex financial tools suitable only for experienced investors.

After the approval of the first Bitcoin ETFs for immediate trading in the US, the world’s oldest cryptocurrency skyrocketed. It surged over 42% since the year began, jumping from under $50,000 at approval time to over $60,000 today.

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ECB President Fears Loss of Central Bank Independence

President of the European Central Bank (ECB) Christine Lagarde attends a plenary session during the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, 24 January 2025. EPA/MICHAEL BUHOLZER
President of the European Central Bank (ECB) Christine Lagarde attends a plenary session during the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, 24 January 2025. EPA/MICHAEL BUHOLZER
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ECB President Fears Loss of Central Bank Independence

President of the European Central Bank (ECB) Christine Lagarde attends a plenary session during the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, 24 January 2025. EPA/MICHAEL BUHOLZER
President of the European Central Bank (ECB) Christine Lagarde attends a plenary session during the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, 24 January 2025. EPA/MICHAEL BUHOLZER

Central bank independence is being questioned in parts of the world and greater political influence over policy could undermined their ability to keep inflation down, European Central Bank President Christine Lagarde said on Monday.

US President Donald Trump said last week he would demand that the Federal Reserve lower borrowing costs, claiming that he knew interest rates much better than people in charge of making that decision, Reuters said.

"While recent research suggests that de jure central bank independence has never been more prevalent than it is today, there is no doubt that the de facto independence of central banks is being called into question in several parts of the world," Lagarde told a Hungarian central bank conference.

The Fed is expected to keep interest rates on hold this week even as the ECB is likely to cut, arguing that inflation is coming down only slowly and that some policy proposals of the Trump administration could actually increase price pressures, likely drawing criticism from the White House.

Lagarde meanwhile warned that political interference could lead to a "vicious circle" that might result in central bank independence being undermined.

"Political influence on central bank decisions can also contribute substantially to macroeconomic volatility," Lagarde said in a video address to Hungary, where Prime Minister Viktor Orban's political ally, former Finance Minister Mihaly Varga, was appointed as the bank's next governor from March.

Lagarde said that persistent political pressure on a central bank increases exchange rate volatility, and raises bond yields and the risk premia.

This sort of volatility could make it more difficult to keep inflation down, raising concerns that independent central banks are failing to deliver on their mandates, Lagarde said.

Such a sequence of events, she said, could then undermine the social consensus and further amplify volatility in the economy.