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Three Reasons Why Bitcoin (BTC) Just Broke Above $40,000

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Sat, 02/06/2021 - 10:56
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Yuri Molchan
The world’s largest cryptocurrency has just surpassed the $40,000 level, first time since January 8
Three Reasons Why Bitcoin (BTC) Just Broke Above $40,000
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Bitcoin has just exceeded the $40,000 level on Bitstamp exchange. Previously, BTC surpassed this level and soared to an all-time high of $41,941.56 on January 8 – data provided by CoinMarketCap.

After that, on January 15, the flagship crypto rose only as high as $39,187 and has been trading in a range since then, going below $33,000 a couple of times.

BTC
Image via TradingView

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Three reasons why Bitcoin has soared above $40,000

Reason one is the acceleration of the Bitcoin hash rate. According to the data from Coin Metrics, it has surged to a record 174,9 EH/s this week.

BTC
Image via Coin Metrics

The second driver for the Bitcoin growth has been the rise of Bitcoin mining difficulty. The value of this metric has surged 2.93 percent.

Also, experts believe that one of the factors that have pushed Bitcoin up this time has been the conference organized by MicroStrategy and its CEO Michael Saylor, on which they have gathered topo managers of around 1,400 corporations to explain what Bitcoin is to them and how why it can be used as a store of value and an inflation hedge.

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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.