In financial markets, December 2023 has started with a bang as both Bitcoin and gold hit record-breaking prices.

Bitcoin, the world’s largest cryptocurrency, saw an astonishing surge of more than 5 percent on Nov. 4, reaching a 19-month high and trading at an astounding $41,809, according to data from Coin Metrics. This marks the first time Bitcoin has crossed the $40,000 threshold this year, and its value has skyrocketed by over 150 percent since the beginning of 2023.

The primary drivers behind this meteoric rise include anticipation surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) and growing bets on U.S. interest rate cuts. These factors have injected new optimism into the cryptocurrency market, pushing Bitcoin to new heights, CNBC reported.

While Bitcoin briefly surpassed $42,000 before a slight pullback, market experts suggest that $48,000 and $52,000 are the next significant price levels to watch.

This surge in Bitcoin’s value comes amid meetings between the U.S. Securities and Exchange Commission (SEC) and key industry representatives, such as Grayscale, BlackRock, and Nasdaq.

Meanwhile, the precious metal market has been ablaze as spot gold prices reached a historic high, surpassing the $2,100 per ounce mark. Although gold briefly retreated by approximately 2 percent on Nov. 4, it continues to trade at a $2,028 per ounce.

“The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold,” Heng Koon How, head of markets strategy, global economics and markets research at UOB, told CNBC in an email.

One of the key drivers of this record-setting rally for gold is the persistent geopolitical uncertainty globally. The recent Israel-Hamas conflict has heightened demand for gold, which is often considered a safe haven asset during times of economic and geopolitical turmoil.

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