On February 7, Bitcoin’s return to above $40,000 was mainly due to the rising risk appetite in the market. According to Stephane Ouelette, CEO and co-founder of institutional cryptocurrency platform FRNT Financial, Bitcoin appears to be consolidating around the 200-day moving average similar to stocks.
Stephane Ouelette sees Bitcoin’s previous declines correlated with Facebook’s decline, while Friday’s gains were correlated with Amazon’s gains. BTC price has recovered to $42,618.67, up 2.6% in 24 hours and 12.3% in 7 days.