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3 reasons why Bitcoin broke the $41,000 and Ethereum $3,000 barrier

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3 reasons why Bitcoin broke the $41,000 and Ethereum $3,000 barrier

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  1. Nasdaq index rises more than 2 percent.
  2. Bitcoin rise driven by the spot market.
  3. Peter Schiff weighs in on the rise in Bitcoin price.

The flagship cryptocurrency Bitcoin has rebounded above the $41,000 level, with the second-largest crypto recapture the $3,000 price mark. Analysts offer three reasons for the bullish reversals of these top-tier cryptocurrencies.

Photo of Coinmarketcap

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Nasdaq index rises more than 2 percent

Bitcoin has been closely correlated with the stock market’s Nasdaq Composite Index and Dow Jones of late. Recently, Nasdaq posted a 2 percent gain, likely contributing to Bitcoin’s rise above $41,400, according to Chinese cryptocurrency journalist and blogger Colin Wu.

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Santiment on-chain data vendor has also cited the rise in the stock market as the reason for the Bitcoin price rise.

As the price started moving higher on Friday, crypto traders’ positive sentiment versus negative spiked to its highest level since late October 2021.

Bitcoin rise driven by the spot market

Wu also tweeted that while Bitcoin and Ethereum have seen gains of 12 percent and 6 percent respectively in the past 24 hours, other cryptocurrencies have stopped gaining. However, CoinMarketCap shows that some altcoins have surged higher – such as Near Protocol (15.50 percent), Decentraland (MANA) (13.20 percent), LEO (22.66 percent), SAND (17.67 percent).

Still, Wu says the likely driver of the price hike for Bitcoin and Ethereum has been the spot market, not the crypto derivatives market. He shared data that in the past 24 hours, the volume of Bitcoin futures liquidations totaled just $100 million with $90 million in shorts liquidated, meaning the derivatives market was relatively cold.

Peter Schiff reacts to the rise in the Bitcoin price

Prominent Bitcoin skeptic, co-founder of SchiffGold, gold enthusiast Peter Schiff has commented on the Bitcoin price surge above $41,000, trolling Bitcoin followers. He tweeted that this could be the last chance to buy the leading crypto above $40,000.

He previously stated on Twitter that he expected Bitcoin to fall below $30,000 and then face a flash crash that would push BTC to the low of $10,000.

However, his son Spencer is a Bitcoiner, despite multiple attempts by 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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