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2 Reasons Why Bitcoin Soared Above $41,000 and Ethereum Regained $3,000

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Sat, 02/05/2022 - 09:15
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Yuri Molchan
Bitcoin has finally reclaimed $41.000 with Ethereum surging back above $3,000, here are two reasons for that price growth
2 Reasons Why Bitcoin Soared Above $41,000 and Ethereum Regained $3,000
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The flagship cryptocurrency Bitcoin has recovered above the $41,000 level with the second biggest crypto reclaiming the $3,000 price mark. Analysts offer two reasons for the bullish reversals of these top cryptocurrencies.

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Image via CoinMarketCap

Nasdaq index rising over 2 percent

Bitcoin has recently been closely correlated with Nasdaq Composite Index and Dow Jones of the stock market. Recently Nasdaq demonstrated a 2 percent rise, which was likely to contribute to Bitcoin’s rise above $41,400, according to the Chinese cryptocurrency 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 started going up on Friday, positive sentiment from crypto traders versus negative one spiked to the highest level since the end of 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 that the likely driver of the price rise for Bitcoin and Ethereum has been the spot market, not the market of crypto derivatives. He has shared data that over the past 24 hours, the volume of Bitcoin futures liquidations totaled only $100 million with $90 million of shorts liquidated, which means that the derivatives market was relatively cold.

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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 stated on Twitter that he expected Bitcoin to drop below $30,000 and then face a flash crash that would take BTC to the $10,000 low.

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.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.