The price of bitcoin (BTC) is giving its investors a break. The digital currency, which last Thursday, February 5, was trading close to $60,000, began this Monday touching $72,226, its highest price since that «black Thursday.» The following graph shows how bitcoin has behaved over the last 7 days.
Bitcoin (BTC) price for the last 7 days. Source: CoinGecko. The recent bullish peak of bitcoin (which at the time of this publication is trading at $70,500, as seen in the BitcoinDynamic Price Calculator) can be considered a indirect consequence of the official victory in the legislative elections in Japan. This result gives Prime Minister Sanae Takaichi greater capacity for action. Takaichi has been responsible for a expansive monetary policy. For example, last year, during his term, a $135 billion economic stimulus package was approved to revitalize the economy. Early in the morning today, Japanese Nikkei Stock Average futures pointed to a sharp rise at the Tokyo market open. Says local media Asia Nikkei: «Analysts say this could boost a wide range of actions, including defense contractors and food manufacturers who would benefit from a reduction in the consumption tax.» AND bitcoin has caught on to stocks that anticipate potential increases in liquidity of the Asian power. According to technical analysis and the theory of supports and resistances, the digital currency would likely remain sideways in this range of prices for some time, just as it has done in the past.
Another asset that is on the rise is goldwhich returns to the $5,000 per ounce zone and shows movements highly correlated with those of bitcoin.
Altcoins, for their part, show mixed movements. Some are with large bullish movements, among them Humanity Protocol (H), decred (DCR) and MYX Finance, whose weekly increases exceed 15%.
10 cryptocurrencies with the highest weekly increase percentage. Source: CoinMarketCap. Others, however, have broad downward movements. Among these are stable (STABLE), zcash (ZEC) and official Trump (TRUMP), whose weekly decrease percentages exceed 18%. But, the price of bitcoin and cryptocurrencies does not depend only on what happens in Japan. Therefore, upcoming news in various parts of the world (especially in the United States) will help determine whether or not BTC continues the bullish path it seems to have started.
