The price of Bitcoin is finally on the rise again. After several weeks of decline caused by an anxiety-provoking financial context, the mother of cryptocurrencies recovered by crossing the $45,000 threshold.
Driven by investments from companies like Tesla or MicroStrategy, and the confidence displayed by institutional investors, the price of Bitcoin exploded last year. At the end of November, the queen of cryptocurrencies even climbed to $69,000. An absolute record.
After this fall rally, the price of the digital currency started to fall again. At the end of January 2022, Bitcoin crashed 50% from its all-time high, passing below $35,000. This crash, caused by the announcements of the American Federal Reserve, caused the disappearance of 1000 billion dollars from the cryptocurrency market. Frightened by the end of the US central bank’s support measures, investors withdrew their funds from the riskiest assets, such as cryptos.
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Bitcoin has come out of its bearish phase, says an analyst
At the beginning of February, the downward trend observed was gradually reversed. During the past weekend, the price of Bitcoin returned to the path of 40,000 dollars. During the night of February 7 or 8, 2022, the oldest cryptocurrency briefly crossed the $45,000 threshold.
The price has therefore exceeded the resistance located around 43,000 dollars, which suggests that the currency has returned to a bullish phase. To confirm the return of this underlying trend, the digital currency should however settle above $46,000 in the coming days.
Asked by CNN, Craig Erlam, principal market analyst at Oanda, a famous exchange rate calculator, believes that Bitcoin’s bearish phase may be over. “We’ve seen what Bitcoin can do once it moves on and while it’s still early days, there’s certainly reason to think the worst may be behind us”explains Craig Erlam.
Despite the drop in recent weeks, companies continue to display their faith in Bitcoin. In its latest report to the SEC, Tesla claims to believe in the “long-term potential of digital assets both as an investment and as an alternative to cash”. The auto giant holds nearly $2 billion in Bitcoin.
Same story on the side of market analysts. Many believe that the price of Bitcoin will continue to set record highs in the near future. 5 fintech experts polled by Finder agree that Bitcoin will trade around $94,000 by the end of the year.
Source: CNN
