Bitcoin rose to US$45,000 on Tuesday, the highest level since April 2022, as investors continue to speculate on whether US regulators will approve Bitcoin exchange-traded funds (ETFs) later this month.
Locally, the Stock Exchange of Thailand (SET) index made a good start to the year, increasing 1.2%.
According to CoinDesk, Bitcoin soared more than 6% on the first day of the new year, as the leading cryptocurrency blew past $45,000 on anticipation that the US Securities and Exchange Commission (SEC) will approve the launch of several spot Bitcoin ETFs.
Reuters reports over the weekend suggested the regulator could begin notifying ETF sponsors as soon as Tuesday that their applications were approved.
In recent trading, Bitcoin was at $45,135, up 6.35% over the last 24 hours. Broader crypto markets also moved higher, with Ethereum rising 4%.
According to Bitkub Online, Bitcoin was quoted at 1,547,008 baht, up 4.6% over the previous trading day.
Krungsri Securities advised investors to await approval from the US SEC, which would be a milestone.
Following an increase of 152% in 2023, analysts in a CNBC poll predict Bitcoin will continue to rise this year, possibly reaching as high as $500,000, in part because the approval of ETFs could attract a large number of new investors.
Bitcoin prices will also be supported by another “halving”, the first since May 2020, which is expected to occur from March to May this year. A halving of rewards for miners reduces the rate at which new coins are created and thus lowers the available amount of new supply.
Kingsford Securities said Thai Bitcoin-related stocks surged yesterday, with Jasmine Technology Solution (JTS) gaining 4.55% to 92 baht, while Ziga Innovation (ZIGA) jumped 14.7% to 3.12 baht, and Xspring Capital (XPG) rose 0.75% to 1.34 baht.
The SET Index rose 17.53 points (2%) to end the day at 1,433.38 on Tuesday, on turnover of 43.27 billion baht.
Analysts from Yuanta Securities Thailand said the Thai bourse was also supported by speculation in shares of Delta Electronics Thailand (DELTA), which alone affected the index by about four points.
Other active sectors were power generation, transport and logistics, and retail. Airports of Thailand (AOT), for instance, has benefited from a recovery in tourist numbers and the government’s Easy E-receipt tax refund scheme for shopping.
Benjaphol Suthwanish, head of research at UOB Kay Hian Securities (Thailand), said he expected the Thai index to reach 1,600 points this year based on an anticipated increase in tourist arrivals and the likelihood the government will introduce more measures to stimulate domestic consumption.
The SET is looking to stage a recovery after turning in one of the worst performances in Asia, losing 15.2% of its value last year.
Expectations of global interest rate cuts have attracted inflows to the stock market, although the US Federal Reserve is expected to keep rates unchanged at its meeting at the end of this month. The first rate cut is projected to happen in March, according to market estimates.
Rakpong Chaisuparakul, senior vice-president of KGI Securities (Thailand), said some foreign inflows are expected this month amid further declines in global bond yields and the US dollar, based on a solid expectations of interest rate cuts.
US economic indicators in early 2024 are expected to show resilience, raising hopes for a soft landing, while in Thailand, private consumption momentum should strengthen, backed by the e-refund stimulus, he added.