Bitcoin reaches $40,000 in less than three weeks after breaking $20,000

Another important milestone is overturned, with the price of Bitcoin reaching U$40,000 in the first week of 2021.

Bitcoin (BTC) reached US$40,000 on Thursday, January 7th, reaching a new psychologically important milestone for the consolidation of the cryptomorphic boom market.

BTC’s price crushes $30,000 in record time

Data from Cointelegraph Markets and TradingView have confirmed that BTC/USD has officially hit new heights during today’s trading, with weekly gains of over 40%.

In just one of several achievements made by  BitQT this year, the largest cryptomeda outperformed the pessimistic forecasts of a downturn after rising rapidly in the last 24 hours.

As reported by the Cointelegraph, Bitcoin’s NVT ratio generated signals that suggested that the upward movement was far from over. On the contrary, data shows that it is probably just beginning.

According to Cointelegraph Markets analyst Michaël van de Poppe:

„The markets are doing very well and the bullish cycle is starting well here. This means that the market will probably continue to operate strongly next year. With standard corrections of 20-30%, be prepared, they occur and are opportunities“.

„Less than a month after Bitcoin exceeded $20,000, its price has doubled, reaching $40,000. Now it is hard for anyone to deny that we are seeing the maturation of a totally new class of assets. This could be a super interesting time for cryptomeda – where every company and individual needs to think seriously about how they are going to get involved and interact with this asset,“ added Sui Chung, CEO of CF Benchmarks, which is the FCA regulated index provider used by CME.

Barry Silbert, who until now was the CEO of Grayscale’s asset management firm, summarized:

„Funny to think that a return of bitcoin price to $20,000 would be the opportunity to buy a life.“

News of Bitcoin’s successes, however, spread beyond crypto circles, reaching the radar of important financial figures in the traditional market, including Holger Zschaepitz, a popular financial commentator and contributor to the German news portal Die Welt.

Mati Greenspan of Quantum Economics suggested:

„The charts only tell the past and we are in a whole new territory. This bull race started at $10,000 and 10 times the previous maximum seems to be the norm for a bitcoin high cycle. Therefore, as we are approaching halfway with extreme momentum, excellent volumes and exceptional fundamentals, I see this as a stop on the way to a Bitcoin price that could be around $100,000. „

On the other hand, David Lifchitz, CIO of asset management company ExoAlpha, added a note of caution. Bitcoin, he argued, is rising very quickly, invoking memories of the dotcom boom.

„What’s worrying is not the fact that BTC is going up, it’s its speed (the speed with which it’s going …) that’s worrying … definitely in bubble territory, but history shows that ‚markets can remain irrational longer than you can remain solvent, he told the Cointelegraph in exclusive comments. “

„At the end of 1999, everyone was convinced that we were on top, but the technology bubble lasted another 3 months and kept rising until it burst on a large scale“.

Altcoins overcame Bitcoin gains in 2021

In the year to date, BTC/USD showed returns surpassed only by certain altcoins. Currently, Ether (ETH) increased 62% in the year and Stellar (XLM) rose 150%. As a result, the Bitcoin dominance index fell to less than 70%.

In Ether’s case, historical highs remain just around the corner,“ and some analysts estimate that altcoin could rise to $2,600 in the short term.