As 2024 kicks off, Bitcoin surges above the 45,000 threshold, marking its highest value since April 2022, riding on a wave of investor optimism and anticipation surrounding the possible green light for exchange-traded bitcoin funds on the spot market, according to Reuters.

In early European trade on Tuesday, Bitcoin soared by 4%, hitting a 21-month peak at 45,400 US dollars. This surge follows a remarkable 156% rally in 2023, marking its most robust annual performance since 2020.

Despite this climb, Bitcoin still trails considerably from its record highs of around ,000 recorded in November 2021.

All eyes in the crypto market are fixated on the potential approval of exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC), which could significantly widen bitcoin's accessibility, attracting a deluge of investments from a broader investor base.

While there have been previous rejections by the SEC due to concerns over market manipulation, recent indications suggest a possible approval of some of the 13 proposed spot bitcoin ETFs, with an anticipated decision as early as this month.

Investors remain cautious, however, as a rejection by the SEC could potentially trigger a downward spiral in cryptocurrency prices. Moreover, the approval of bitcoin ETF funds might lead to a similar sell-off trend following the principle of "buy on rumors, sell on facts."

The expectation of global central banks cutting interest rates in 2024 adds favorably to cryptocurrency markets, contributing to an improved trading environment. The crypto space, which had been under pressure following the collapse of major exchanges and businesses in the past, is now seeing a resurgence, attributed in part to macroeconomic factors.

Industry experts foresee substantial growth in the crypto market this year, influenced by factors such as the influx of investment into spot ETFs, upcoming bitcoin mining reward halving, and anticipated monetary policy shifts across major economies, as highlighted by Jupiter Zheng, liquid funds partner at HashKey Capital, speaking to Reuters.

One of Bitcoin's significant events is the halving, where mining rewards are halved every four years to restrict Bitcoin's total supply to 21 million tokens. The upcoming halving, expected around April 2024, will reduce mining rewards to 3.125 bitcoins, impacting the supply dynamics of the digital currency.