By Susie Violet Ward · Forbes · 4 December 2023
In December 2023, bitcoin reached $41,733, up more than 145% since the start of the year, and its market capitalisation overtook Berkshire Hathaway’s, making it the tenth most valuable asset globally at the time. The article links the rise to macroeconomic factors, including the Federal Reserve’s meeting on 12 and 13 December, ahead of which Jerome Powell, then the Fed’s Chair, had signalled caution about cutting interest rates until inflation reached its 2% target.
It cites the liquidation of $220 million in crypto perpetual futures positions over a weekend, including more than $120 million in bitcoin shorts, but notes that institutional investors remained cautious, with $113 million of outflows from bitcoin investment products the previous week. The rally appeared to be led by individual investors, with the halving expected in 2024 and the anticipated spot ETFs also influencing sentiment.