Bitcoin was up by a total of 6.43% on Tuesday, touching its all time high since 2022 at $45,317.67. A day after breaching the historic mark, Bitcoin continues to go strong, up by a little less than one percent on Wednesday.

On January 3, the Bitcoin rates were recorded at $45,257.70, not close to dipping below its 21-month high. The rates were 0.70 percent higher than the closing price of the cryptocurrency. This also led to an overall surge in the cryptocurrency market in the first few days of January.

With the Bitcoin prices surging above $45,000 for the first time in months, the rates of the cryptocurrency in India were recorded at ₹37,66,766.47 on Wednesday, up by ₹22,454 after the sudden price surge.

Other tokens in the crypto market traded higher on January 2-3 due to Bitcoin, with Ethereum surging by 3.8%, Solana (SOL) gaining over 7% while Cardano up over 5%. It is expected that the surge in cryptocurrency will continue during the week.

Reason behind Bitcoin price surge

The prime reason behind the hike in the prices of Bitcoin is the expectation that the US Securities and Exchange Commission (SEC) will approve the launch of a spot bitcoin Exchange-Traded Fund (ETF).

The decision of the SEC will be finalised by January 10, when it will either approve or reject the Ark/21Shares ETF, reported Reuters. However, the decision regarding the same can come this week, by Wednesday or Thursday.

The U.S. Securities and Exchange Commission has rejected multiple applications to launch spot bitcoin ETFs in recent years, arguing that the cryptocurrency market is vulnerable to manipulation.

As per past trends, Bitcoin often rallied forward during the US Election season, which means that the crypto markets will continue to buzz for the next few months. However, the rise and fall of crypto in the United States will primarily be determined by the decision of the SEC.

(With inputs from Reuters)