On Monday, Bitcoin increased by 3% to $42,956 following its jump on Friday. Earlier, BTC overtook the important level of $40,000 and settled at $41,900 during the weekend - the highest level for the cryptocurrency since October 2021. The next significant target for BTC is $46,000-$47,000, analysts say.
Over the last week, Bitcoin gained 9% and closed at $41,700. Leading altcoin went up as well, with Ethereum rising by 15%, Binance Coin increasing by 5.8%, and Solana advancing by 17.3% over the past 7 days.
According to CoinGecko, the total capitalization of cryptocurrency market rose by 11.9% to $1.99 trillion over the week.
Crypto assets were boosted by rising US stock market indexes during the first week of February. Since the beginning of 2022, cryptocurrencies have been highly correlated with risk assets. Following a massive slump in January, US stock indexes rallied for the second straight week. On Friday, the yield of 10-year US treasury bonds soared above 1.93%, striking a 2-year high. This situation could lead to a sell-off in the equities market, analysts say.
Friday's US labor market data, which exceeded expectations of economists, could boost the monetary policy tightening of the Federal Reserve.
If cryptocurrencies manage to withstand the pressure of these factors and continue their upward movement, an upward reversal could be possible.
The Shiba Inu altcoin pushed a 3-week high on Monday, surpassing $0.000029. SHIB soared on the announcement of the upcoming public test of Shibarium, the cryptocurrency's level-2 solution. According to the memecoin's developers, Shibarium would reduce transaction fees and would allow the coin to be used as an in-game currency.
The developers of Shiba Inu have been establishing its ecosystem. Earlier, the ShibaSwab decentralized exchange was launched, followed by the update allowing investors to stake the asset.
Major SHIB crypto whales, who hold about 26% of its total supply, have reacted positively to the news.
On Monday, market players are focusing on statements by heads of major central banks, as well as the upcoming US inflation data later this week. Soaring inflation in the United States and the Fed's measures to tackle it remain a major issue for all markets.
Currently, analysts are mixed on BTC's future trajectory. Some experts believe that BTC could rise to $44,500 this week, as the stock market is no longer under the heavy influence of corporate financial statements. Particularly bullish outlooks see BTC reach $52,000 by May 2022.
Bearish analysts assume the current upward trend is unlikely to last long and would be followed by a renewed dive with occasional upward corrections. They expect Bitcoin to test the support at $37,000-38,000 in mid-February before descending to $31,900.
