The price of Bitcoin rose above the $42,000 mark, marking its first sustained move above this level since April 2022. Investors are watching US employment data due on Friday, a key release that will be the last major labor report before the next Federal Reserve policy meeting. The move reflects growing confidence that monetary policy might shift in 2024, even as markets brace for fresh data and potential signals from policymakers about the path ahead.
Beyond the immediate jobs data, several other catalysts are supporting Bitcoin’s uptick. A potential approval of an exchange-traded fund in January would provide a regulated on-ramp for mainstream investors. Meanwhile, the United States Securities and Exchange Commission has been adjusting expectations around crypto products, and the ongoing discussion about mining rewards, which undergo a scheduled halving roughly every four years, also adds to the narrative around Bitcoin’s supply dynamics and future inflation risk. These factors together help explain the recent price pressure and positive momentum in equities and crypto markets alike.
Bitcoin traded around $42,155 during Monday’s session, but the price later steadied near $41,537, reflecting a net gain of about 5.2% from the previous close. The swing in Bitcoin’s price also aligns with broader risk-on sentiment seen in North American markets, where investors weigh the potential for higher yields against macroeconomic uncertainty. For Canadian and US traders, the move highlights how digital assets are increasingly perceived as part of a diversified investment approach rather than a niche experimental asset.
This rebound comes after a period of volatility that saw Bitcoin retreat to levels not visited since early 2022. The year 2022 included a major wave of stress in the crypto sector triggered by the collapse of Terra’s stablecoin and a series of high-profile bankruptcies. The sector’s turbulence culminated in late 2022 with the FTX bankruptcy, which reverberated across exchanges and market participants. Regulators and institutions have since been recalibrating their risk frameworks, prompting cautious optimism among traders who seek greater clarity and stronger protections ahead of the next cycle.
In late 2023, the resignation of a high-profile executive from a leading exchange, as part of a broader set of enforcement actions involving money-laundering charges and substantial fines, underscored the continued regulatory scrutiny facing the industry. These developments have infused a new sense of accountability and resilience into the market, contributing to a steadier, more credible trading environment that appeals to risk-aware investors in North America and beyond.
Analysts from the Asian Crypto Alliance, among others, note that recent regulatory actions have strengthened investor trust, arguing that such measures help align crypto markets with traditional financial norms. Market observers have pointed to the momentum in traditional finance as a contributing factor, with expectations for a potential Fed rate movement fading as the economy absorbs incoming data. In this context, Bitcoin’s performance is seen as part of a broader risk-on posture that benefits from improving liquidity and a more predictable policy backdrop indicating tolerance for measured risk-taking.
golden record
Turning to the precious metals market, spot gold also registered notable gains in response to the possible shift in US monetary policy and a softer dollar. The price touched a high near $2,148 per ounce after previously resting around $2,072. This movement underscores how gold remains a traditional hedge during times of policy uncertainty and currency fluctuation, attracting interest from Canadian and US investors seeking portfolio diversification and capital preservation amid macro volatility.
The gold rally gained traction last Friday as signals from the Federal Reserve chairman pointed toward cautious yet forward-looking policy action. Inflation was described as moving in a constructive direction, with the central bank emphasizing prudence in its approach to future rate decisions. Market participants then recalibrated expectations, with some pricing in a potential easing path that could bolster non-yielding assets as an alternative to equities during a slowdown scenario.
Market commentators, including senior voices from regional investment firms, suggest that bets on rate reductions could intensify if incoming data corroborates cooling inflation and slower growth. The combination of growing inflation containment and a more accommodative stance could lift both gold and select digital assets, providing a hedge against currency weakness and guiding risk management for portfolios across North America.