Can Bitcoin reach one million dollars? It is a question that for now does not seem to have a conclusive answer. However, in the medium term and based on the growing acceptance of cryptocurrencies as a means of exchange, it is very possible that this figure, which today is seen as something distant, will become a reality in a relatively short time, assuming that the governments of the world and especially the banks, which have never looked favorably on cryptocurrencies, do not decide to join together to definitely stop this new technology.
Bitcoin, the most prominent cryptocurrency and the pioneer of this digital currency movement, has reached $44,000 today February 7, 2022, after plummeting below $35,000 between December 2021 and January 2022. Thus, the most popular crypto of all time has accumulated a gain of 30% since its maximum drop on January 24, about two weeks ago.
Specialists in cryptocurrency markets highlight that Bitcoin managed to overcome price levels that are "key" and expressed signs of sincere optimism, thanks in part also, to price rises of up to 15% on average led by coins such as XRP, Solana, and Cardano (+7%).
The last time the Bitcoin had managed to surpass US$44,000 was last January 5, then came several down days that led the coin to reach lows in the $33,000 area. Thus, Bitcoin is partially recovering and now experts are confident that it will soon break the $45,000 ceiling.
In this way, the first cryptographic currency of the market leaves gains in the last week that have restored hope to investors who feared a collapse to very low levels not seen for a long time. Also noteworthy is the performance of altcoins such as Shiba Inu, which has already crossed the threshold of 40% weekly gains.
The bullish cycle was consolidated last Friday when Bitcoin managed to break through the $40,000 area which had been a major support throughout the previous bullish phase and had now turned into a control zone that at times seemed to be uncrossable.
However, according to data compiled by Coindesk, Bitcoin trading volume on the major centralized exchanges over the weekend was down considerably when compared to Friday, February 4, but was in line with most days last week, when it was down as Asia's major cryptocurrency markets were closed for the Lunar New Year vacation, which undeniably influenced the currency's behavior.
Global markets fluctuated in recent weeks as investors contemplate the prospects of monetary tightening. After reaching a record high of $69,000 in early November 2021, Bitcoin lost as much as 50% of its value in what has been dubbed a "crypto winter" that analysts say is expected to be temporary.
In the words of Nathan Batchelor, lead Bitcoin analyst at Simetri Research, "On a fundamental level, little has changed for Bitcoin since last Friday, so we could be seeing a bit of a contraction in the market."
"A quick glance at the order book data shows that the market is still positioned short, so a rally to break through the $43,000 level could see the current bullish move head towards the $45,000 level″ according to Batchelor.
In recent months an increasingly consolidated relationship appeared between Bitcoin and stock indexes, in particular with the Nasdaq 100 index, mainly of technology stocks, which is a clear sign of the influence that cryptocurrencies are having more and more every day in markets everywhere in the world.
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