• Bitcoin reaches a 21-month peak: Soaring 156% in 2023, Bitcoin hit a high of $45,532, marking its strongest yearly performance since 2020.
• Ether climbs alongside: The Ethereum-linked coin, Ether, also joined the rally, rising 1.45% to $2,386 after a 91% surge last year.
• Spot ETF approval in sight: The US Securities and Exchange Commission's potential green light for a spot Bitcoin ETF is seen as a game-changer, attracting billions in investments and millions of new players.

In a triumphant start to 2024, Bitcoin roared back above $45,000 for the first time since April 2022, fueled by optimism around the potential approval of a spot Bitcoin ETF. This highly anticipated move could unlock the floodgates of new investors and capital, propelling the crypto market into a new era of growth.

ETF Approval Hinges on Regulatory Nod: Investor's eyes are glued to the SEC, which has previously rejected spot Bitcoin ETF applications due to concerns about market manipulation. However, recent signals suggest a possible change of heart, with a decision expected in early January.

Green Light vs. Red Light: Chris Weston, head of research at Pepperstone, warns of a potential "tumble" if the ETF is rejected. Conversely, approval could trigger a "buy the rumor, sell-on-fact" scenario or fuel upward momentum.

Central Banks and Crypto: Rising anticipation of interest rate cuts by major central banks further bolsters the crypto market. This shift towards a more accommodative monetary policy starkly contrasts the gloom that clouded crypto in 2022 following major collapses like FTX.

Looking Ahead: Jupiter Zheng, partner of liquid funds at HashKey Capital, predicts "notable growth" for the crypto market this year, citing the potential ETF influx, the upcoming Bitcoin halving, and the easing of monetary policy as key drivers.

With Bitcoin breaking through key resistance levels and the ETF decision looming, 2024 promises to be a pivotal year for the cryptocurrency market. Whether the rally continues or stalls depends on the regulatory landscape and broader economic conditions. One thing is certain: the future of crypto remains as thrilling and unpredictable as ever.