Bitcoin finally recovered $41,000 with Ethereum rallying above $3,000, here are three reasons for this price growth
The flagship cryptocurrency Bitcoin has recovered above the $41,000 level with the second biggest crypto reclaiming the $3,000 price mark. Analysts offer three reasons for the bullish reversals of these top-tier cryptocurrencies.
Nasdaq index up more than 2%
Bitcoin has recently been closely correlated with the Nasdaq Composite Index and the Dow Jones stock market. Recently, the Nasdaq saw a 2% rise, which should help Bitcoin rise above $41,400, according to Chinese journalist and blogger Colin Wu.
Santiment on-chain data vendor has also mentioned the rise in the equities market as a reason for the Bitcoin price surge.
As the price began to rise on Friday, the positive sentiment of crypto traders against the negative reached its highest level since late October 2021.
Bitcoin rise driven by the spot market
Wu also tweeted that, even though Bitcoin and Ethereum have shown increases of 12 percent and 6 percent over the past 24 hours, respectively, other cryptocurrencies have not gained more. CoinMarketCap, though, shows that some of altcoins have surged higher – such as Near Protocol (15.50 percent), Decentraland (MANA) (13.20 percent), LEO (22.66 percent), SAND (17.67 percent), etc.
Still, Wu says the likely driver of Bitcoin and Ethereum’s price rise has been the spot market, not the crypto derivatives market. He shared data that in the last 24 hours, Bitcoin futures liquidation volume only totaled $100 million with $90 million of shorts liquidated, meaning that the derivatives market was relatively cold.
Peter Schiff weighs in on Bitcoin price surge
Prominent Bitcoin skeptic, cofounder of SchiffGold, lover of gold Peter Schiff has commented on the Bitcoin price surge above $41,000, trolling Bitcoin supporters. He tweeted that this may be the last chance to buy the leading crypto above $40,000.
Previously, he said on Twitter that he expected Bitcoin to fall below $30,000 and then face a flash crash that would take BTC to the low of $10,000.
His son Spencer is a Bitcoiner, though, despite multiple attempts of Schiff senior to convert him to gold. Schiff junior tweeted that he had bought more Bitcoin when the price went up.
