Crypto ‘comeback’? This time it’s not different

HERE we go again. With the Federal Reserve signalling an end to its interest rate hike cycle and the possibility of spot Bitcoin ETF approval by US regulators, the crypto bros are now crawling out of the woodwork after a long winter. 

Bitcoin has been on a tear this year, with prices above US$44,000 at one point in December – a 20-month high – after starting the year around US$16,000. As at Dec 12, it’s hovering above US$41,000, reflecting its trademark volatility. The world’s second-largest cryptocurrency Ethereum has also risen, albeit less dramatically, to above US$2,200 from slightly above US$2,000 a month ago.   

Bitcoin still has some way to go compared with the height of the crypto boom in Nov 2021 when its price soared above US$68,000. But investors who have been HODL-ing (crypto lingo for holding on for dear life) since the last bubble are now betting that prices will once again go “to the moon”, never mind the pain of crashing to the ground in the past year or so.