Bitcoin News

Bitcoin poised for its highest monthly gain in three years

According to market experts, Bitcoin (BTC) is nearing the end of its most successful month since December 2020, which could indicate that the current surge is in the early stages with the potential for additional growth. Bitcoin, the undisputed leader in cryptocurrencies, surged to an all-time high of $64,000 during trading on Wednesday, with a surge that surpassed all previous peaks of $50,000 and $60,000. This increase is due to the price falling below $40,000 after the introduction of bitcoin ETFs in the United States last month.

It is expected that the peak value of the current digital currency will be attained by the conclusion of February. In order to achieve the intended value, it must surpass its prior peak set in October 2021, which stood at $61,357 as the market cycle concluded. At the moment, the BTC is worth approximately $61,200.

The CoinDesk 20 Index (CD20), which surpassed 40%, reflected the expansion of numerous cryptocurrencies in February, mirrored the crypto market expansion. The pertinent CD20 assets, including the UNI governance token from Uniswap, FIL from Filecoin, and the fashionable meme coin Dogecoin (DOGE), outperformed the astounding transactions of Bitcoin.

Analysts maintain the view that despite the current level approaching its highest point ever, the ceiling has yet to be reached. The Galaxy’s director of enterprise-wide research, Alex Thorn, stated on X that the market is still far from reaching its peak. Conversely, he underscored the transformative nature of the U.S. spot bitcoin ETF, which was followed by a consistent and expanding demand for Bitcoin. Furthermore, 75% of the total supply of Bitcoin is graciously held by long-term investors, whose reluctance to sell could result in a substantial price increase. 

According to IntoTheBlock experts, a number of metrics, including on-chain transaction volume and retail interest in cryptocurrency, are currently at comparatively low levels when compared to peak periods. This means that the market will continue to grow, whichever way. In contrast, Swissblock, a crypto-focused analytics firm, also describes the current uptrend favorably, stating that it is merely the start. Moreover, positive readings on oscillators and moving averages suggest that Bitcoin may continue to advance, as research indicates that these patterns have always exhibited consistent buying activity.

Conversely, Swissblock specialists advocate for a compelling rationale to support a judicious purchase instead of an arbitrary demand that could result in a significant financial detriment. In addition, they propose that the inevitable pullback serves as a more conspicuous indication of a buy point.

Subsequently, JPMorgan will execute a fourth halving event during which the mining rewards will be reduced. According to a JPMorgan analysis, the largest cryptocurrency could decline to approximately $42,000. Investors are currently being reminded of the critical nature of volatility in cryptocurrency markets, which contradicts the optimistic tone of the forecast.

Jason Palmer

Jason Palmer joined CoinNewsSpan as an editor and analyst. He has over five years of experience as a forex analyst. He holds a master's degree in business administration with specialization in finance. He is actively involved in analyzing the prevalent crypto trends. He has a keen interest in commodities and forex trading.

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