The past year has generally been favorable for Bitcoin (BTC) as it recouped most of the losses incurred during the 2022 bear market.
Bitcoin is currently focused on reclaiming and sustaining gains above the $45,000 resistance level. This surge is supported by several bullish sentiments, with anticipation around the potential approval of the spot exchange-traded fund (ETF) ranking high.
Notably, there is an expectation that the Securities and Exchange Commission (SEC) will likely approve the product in early January.
It’s worth noting that these gains come after Bitcoin consolidated below $30,000 for the better part of 2023. At the same time, Bitcoin’s gains emerged despite potential negative news affecting the cryptocurrency space.
For instance, the cryptocurrency demonstrated resilience even as Binance CEO Changpeng Zhao pleaded guilty to criminal charges and stepped down as the company’s CEO as part of a $4.3 billion settlement with the Department of Justice. Furthermore, Bitcoin sustained its momentum in an environment of high interest rates.
How much would $1,000 invested in Bitcoin be worth?
When looking at how much Bitcoin would have returned with an investment of $1,000, the maiden cryptocurrency has generally showcased its growth potential. Starting at $16,619 in January 2023, the leading cryptocurrency has experienced a remarkable surge of 162%, reaching its current price level, exceeding $43,000.
For investors who identified the potential bullish trend and committed $1,000 to Bitcoin in January of the previous year, the initial investment would have appreciated significantly, transforming a modest $1,000 into a substantial $2,620.
Indeed, Bitcoin commenced 2024 on a bullish note, surpassing $45,000 on January 2 for the first time since April 2022. Specifically, Bitcoin reached a 21-month peak of $45,922, marking a 156% gain last year – its most robust yearly performance since 2020.
In addition to the anticipation surrounding the spot ETF approval, Bitcoin also seeks to maintain gains ahead of the halving event, which has historically been associated with price increases.
Bitcoin price analysis
Bitcoin was trading at $43,581 by press time, gaining over 3% in the last seven days.
A review of Bitcoin’s technical analysis points to a bullish outlook for the pioneering cryptocurrency. A summary of the one-day gauges aligns with the ‘buy’ sentiment at 13, while moving averages indicate a ‘strong buy’ at 13. On the other hand, oscillators suggest a ‘sell’ at 2.
Meanwhile, Bitcoin continues to witness a surge in on-chain activity, particularly from large holders. According to a Finbold report on December 5, within 24 hours on January 4, Bitcoin registered 16,900 transactions involving amounts exceeding $100,000.
This notable increase in whale activity can reflect how significantly Bitcoin holders strategically position themselves within the market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
