Bitcoin (BTC) is back: price cracks the 40,000 US dollar mark
After a weak January, the bitcoin price is back and has now managed to recapture the 40,000 US dollar mark on 6 February. At the time of going to press, the bitcoin price is at 40,360 US dollars – a 24-hour gain of over 7 percent. Could it soon crack its old all-time high?
While altcoins and especially tokens from the DeFi ecosystem made rapid price gains in January, the Crypto Trader bitcoin price corrected visibly. Its market dominance fell from 72 percent at its peak in the first week of January to 60 percent at the turn of the month. Now it seems to be back and making another run.
Bitcoin all-time high within reach
The BTC all-time high is 41,940 US dollars, which means that only a few percentage points – around 3 to 4 percent – separate the Bitcoin price from its record high. Accordingly, the chances are good that it will mark a new all-time high this weekend.
As the analysis service Santiment announces on Twitter, BTC accumulation on the part of the so-called whales is increasing rapidly. So it is the particularly large investors who are going on a Bitcoin shopping spree. So it is also the institutional investors who are causing one news item after another in the crypto market these days.
Large investors are buying the market dry
Not only are bitcoin mining companies reporting record results, but there are also new reports from hedge funds practically every day. For example, CrossTower announced the issuance of a new bitcoin hedge fund this week.
At the same time, the largest Bitcoin online conference for institutional investors and corporates also took place this week. Microstrategy CEO Michael Saylor, who himself has already invested over a billion US dollars in BTC with his company, was beating the promotional drum for the digital gold. As BTC-ECHO reported, statements such as: „Bitcoin will be worth more than gold“, fuelled the price fantasy of investors and potential investors.
Above all, the Bitcoin positivism of opinion leaders such as Elon Musk or Jack Dorsey is creating a buying mood among many investors. For example, Elon Musk had added the Bitcoin symbol to his Twitter profile for a short time, while Jack Dorsey in turn announced that he had suspended a Bitcoin Node.
Heated market sentiment not only for Bitcoin
Basically, it can be observed that the financial markets are more than heated up. There is more money than ever before in the market and the Corona bailout programmes as well as central bank billions ensure that there is never-ending liquidity flowing into the financial market. This not only fuels inflation fears, but also leads to phenomena such as Wallstreetbets.
As a result of Corona consumption cuts, many private investors have more money than usual in their pockets for speculation or investment. At the same time, Corona lockdown and winter promote a lack of excitement and a longing for „action“. Quite a few investors are sitting at home in front of their PCs, bored and with a lot of money. In addition to macroeconomic factors, these circumstances are also likely to contribute to a particularly large amount of money flowing into Bitcoin and other assets.