Bitcoin topped $40,000 as the largest digital asset extended a 2023 rebound on expectations of interest-rate reductions and greater demand from the exchange-traded funds sector.
The token added as much as 2.9% to reach $40,867 and was just shy of that mark as of 10:33 a.m. Monday in Singapore, taking its 2023 jump to 146%. Bitcoin was last at such levels in April 2022, before the TerraUSD stablecoin collapse that contributed to a $2 trillion rout in digital assets.
Investors are increasingly convinced that the Federal Reserve is done with rate hikes as inflation cools, turning the focus to the likely extent of cuts next year. The changed backdrop has fueled a rally across global markets.