- After some sell offs, Bitcoin recorded a daily high so far at USD 9,451 and looks set to stay in this range
- Ethereum miners are approaching record levels of ETH holdings in cumulative pool totals as ETH price climbs above $180
- Crypto analysts have declared the USD 100,000 Bitcoin bull run officially here
It ended up as a nervy Friday after all, with a daily low of USD 9,198 for a moment breaking the USD 9,200 support level, but bulls rallied to ensure that Bitcoin would trade on Saturday in the good zone, with price trading at a daily high so far of USD 9,451 a few hours ago (CoinDesk).
Altcoins fared just as well, with Ripple (XRP) going back towards 24 cents, Ethereum (ETH) moving back above USD 180 and many others regaining the heights of the previous week in the absence of a sustained sell off.
February is a historically positive time for Bitcoin and it does look like the buyers are determined to make sure things stay that way in 2020. The popular narrative is down to Chinese investors seeing off a good Lunar New Year, but with that happening weeks ago already and the health fears in mainland China, the current rally is instead attributed to panic in traditional stock markets and a desire to spread risk out to digital assets.
If Bitcoin mining is at an all time high in terms of hash rate, we should note also that Ethereum miners are currently making new records of holdings in ETH as well, and some analysts believe this to be a marker of confidence in the world’s biggest smart contract platform.
ETH mining pools are nearing the all time high set in October 2019 when they held 1.69 million ETH, and crypto analysts Santiment says that the rise from 1.64 million November low had been steady and stable, which is positive news for ETH holders. Santiment founder Maksim Balashevich noted in Spencer Noon’s Substack newsletter:
“These periods of accumulation tend to suggest high confidence levels in the project among the majority block creators, at the very least relative to the current market conditions. On the other hand, major miner sell-offs have often been followed by quick and significant price corrections historically.”
Compared to a year ago, ETH’s cumulative balance in all mining pools have jumped 11%, and notably increased in four months to October 2019 when price slipped from USD 366 to current levels. It makes sense that miners are willing to accumulate and hold in such low prices, as markets have decidedly turned bullish when ETH rallied 120% in the first six months, while dips are taken to be only temporary corrections in bull market medium terms.
When price did not recover, most miners liquidated in late October around USD 170 which caused the drop in holdings, says Balashevich. Nevertheless, mining profitability is at a good level and miners are basically only selling to make up for operational costs, so long term, ETH is pretty bullish coming up to Ethereum 2.0 improvements.
Bitcoin, of course, still takes the best news of the day, with a crypto influencer happily declaring that the USD 100,000 bull run has finally arrived.
In a Market Discussion yesterday, YouTube bloggers Carl Runefelt and Nicholas Merten — better known by their respective aliases TheMoon and DataDash — said that in fact, the world’s largest digital asset by market capitalization had already been in a bull market for a while.
They are only the latest to finally say that the bullish sentiment is true, on the back of Bitcoin being the best major investment opportunity for 2020 way ahead of gold. Tesla stocks don’t count, by the way, since not everyone is able to access that opportunity!
But the analysts do admit that timeframes are very important when deciding if a bull trajectory was indeed here, even if they were firmly of the opinion that a six-digit US dollar valuation was well on its way. Mertens said the next bull cycle would be aiming at least USD 80,000 if not the full six-digit figure:
“Until we get to $20,000, we’re not going to see the parabolic run that we’ve seen in previous cycles, like when we went from $1,000 to $20,000 in 2017… That’s really what I define as a key bull market for cryptocurrencies, but we’re trading higher… we’re going for higher highs and higher lows, those are all positive signs.”
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The post Trending Bitcoin News and Market Sentiment February 1st, 2020: Ethereum Miners at Record Holdings, Bitcoin $100K Bull Run Has Arrived appeared first on BitcoinNews.com.
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