3 Reasons Why Bitcoin Surges Above $41,000 and ETH Climbs Back to $3,000

Top cryptocurrency Bitcoin has now rallied above $41,000 while second largest coin ETH is reclaiming $3,000. Analysts have given three reasons for this positive move higher.

BTC/USDT | Source: Trade View

Nasdaq Index up more than 2%

BTC has recently been closely correlated with the Nasdaq Composite Index and the stock market Dow Jones. Therefore, a 2% Nasdaq rally should help BTC surge above $41,400, according to the Chinese crypto journalist and blogger. Colin Wu.

“Bitcoin surpassed $41,600, up 12% in 24 hours, and ETH surpassed $3,000. Few of the top 100 cryptocurrencies have risen more than BTC and ETH. The Nasdaq index, which is closely related to crypto, has recently gained more than 2%.”

On-chain data provider Santiment also cited the bullish stock market as the reason behind BTC’s surge.

As prices began to rise gradually on Friday, the ratio of traders’ positive sentiment to negative sentiment rose to the highest level since late October 2021.

Ratio of positive/negative mood | The source: mood

Bitcoin rises due to the spot market support financially

Wu also tweeted that while BTC and ETH showed gains of 12% and 6% respectively in 24 hours, other cryptocurrencies didn’t gain much. However, CoinMarketCap shows some altcoins moving higher, such as NEAR (15.5%), MANA (13.2%), LEO (22.66%), SAND (17.67%),…

However Wu to say The bullish driver for Bitcoin and ETH is the cash market, not the derivatives market. He shared data showing that Bitcoin futures liquidation volume over the past 24 hours was just $100 million, with $90 million of shorts liquidated, meaning the derivatives market is relatively distant.

“The data shows that despite the sharp price increase, the 24-hour BTC contract liquidation volume was only $100 million, with $90 million in liquidated short positions, indicating a relatively cold derivatives market, pale and the uptrend is on the spot market attributable”.

Peter ship debate about the move Bitcoin price increase

Famed bitcoin skeptic and SchiffGold co-founder Peter Schiff commented on bitcoin’s price surge above $41,000 and mocked the crypto king’s supporters. He tweeted that this could be his last chance to buy over $40,000.

He previously claimed on Twitter that BTC would fall below $30,000 and then experience a flash crash that would push the price as high as $10,000.

However, his son Spencer is a loyal bitcoiner, despite repeated admonitions from his father to switch to gold. Spencer was tweets that he buys more bitcoins when the price goes up.

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