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Analysts Expect Bitcoin to Rise Higher This Week, Here's Why

Mon, 02/07/2022 - 10:44
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Yuri Molchan
Santiment data shows that Bitcoin may continue to rise today based on the rise of this important market index
Analysts Expect Bitcoin to Rise Higher This Week, Here's Why
Cover image via stock.adobe.com

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Santiment analytics team has tweeted that Bitcoin may continue its price climb that started on the weekend as soon as the value of the S&P 500 gets a Monday update.

On Friday, the major cryptocurrency recovered above $40,000 and, the following day, broke above the $41,500 level. Earlier today, Bitcoin briefly hit $43,000 but then bounced back to $42,400. Earlier today, BTC soared to almost $43,000, reaching a strong technical resistance.

The second largest digital currency, Ethereum, managed to recapture the $3,000 zone, where it is trading still.

All eyes on Bitcoin and S&P 500

Analytics data shows that, recently, Bitcoin has been closely correlated with the traditional stock market, including the Nasdaq Composite Index and the S&P 500, according to the Santiment team.

Now, they have stressed that "Bitcoin has an incredibly close tie to the volatile S&P 500," and traders are watching this index attentively, expecting that if it goes up, Bitcoin will follow it.

On Saturday, Chinese crypto journalist Colin Wu tweeted that bears had liquidated $90 million worth of BTC futures, which led him to believe that the rise above $41,600 at the start of the weekend was driven mainly by the spot market, and the derivatives market back then remained relatively cold.

Related
Bitcoin Reaches Strong Technical Resistance as Price Spikes to Almost $43,000

Will a U.S. state adopt BTC as legal tender this year?

Mike Alfred, a venture investor and formerly a founding CEO at BrightScope and Digital Assets Data, has taken to Twitter to assume that, this year, at least one U.S. state is likely to adopt Bitcoin as legal tender.

He has tweeted that several states—Arizona, Texas, California and Michigan—are in the runnings. Once any of these states makes an announcement, Alfred wrote, the Bitcoin price may soar to new all-time highs.

In the comment thread, he also posted a link to a petition to help vote for Bitcoin adoption as a legal tender, suggesting that his followers go and sign it.

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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.