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In February 2024, Bitcoin's valuation surged by 42.55% over the previous month, reaching $64,071, nearing its all-time high of $68,789. This growth marks a significant moment for investors as the cryptocurrency approaches its historical peak. The sustained upward trend suggests robust investor confidence, despite January's volatility marked by price swings and a significant standard deviation. The rally is also due to the introduction of spot bitcoin ETFs in the US, providing direct access to bitcoin with lower fees than futures-based ETFs.
The recent surge underscores a strengthened positive sentiment, evidenced by increased trading volumes and price stability at levels higher than those of the previous month.
“February has been a very strong month for Bitcoin, and Bitcoin Mining. We expect more of the same in March, driven by the attention around ETFs, changing media sentiment and the upcoming Halving. We are excited to see that media and investor sentiment has changed and the mainstream market is becoming even more receptive to our market offering. The timing is perfect as we bring our new mining as a service product to market by the end of March. Watch this space!” - Nick van Houtrijve, Pantheon Mining Co-Founder & Head of Mining Operations.
Bitcoin's rose from around $45,000 to approximately $49,000 at February's start, followed by a period of stability where the price fluctuated between $49,000 and $53,000, indicating a consolidation phase. Towards the month's end, Bitcoin experienced a notable surge from $53,000 to around $64,071, accompanied by increased volume, highlighting strong buyer interest.
By the month's close, Bitcoin maintained its position near $64,071, suggesting bullish investor sentiment. Notably, February saw no significant price drops, indicating an exceptionally positive month for Bitcoin.
The recent surge in Bitcoin's price to over $64,071 can be attributed to significant institutional investment and bullish market sentiment, marking a notable shift in investor preference towards digital assets. The record-high trading volume of $2.4 billion in US-based spot Bitcoin ETFs reflects increased institutional involvement.
The introduction of new Bitcoin ETFs, accumulating $5.6 billion since their launch, indicates a widening interest in Bitcoin beyond traditional digital asset enthusiasts. This rally, outperforming traditional assets such as stocks and gold, underscores a growing shift towards cryptocurrencies, with the digital asset market's value rebounding to $2.2 trillion from previous lows.
Despite rising US Treasury yields, which suggest an anticipated tighter monetary policy, Bitcoin and other digital tokens continue their upward trajectory, defying conventional market indicators. MicroStrategy's strategic acquisition of an additional 3,000 Bitcoin tokens, boosting its holdings to a value of approximately $10 billion, exemplifies corporate endorsement of cryptocurrencies as a credible asset class. Additionally, on-chain data showing significant Bitcoin accumulation by 'whales' with a 38% unrealized profit, highlight Bitcoin's attractiveness to savvy investors.
The liquidation of short-sellers, unlike the elimination of leveraged long positions typically seen at bull market peaks, indicates strong confidence in Bitcoin's price sustainability. This suggests a different dynamic in the current market trends.
The Bitcoin network hashrate fluctuated between 500 EH/s and 700 EH/s in February 2024, reflecting the miners' activity and profitability. The hashrate ended the month on a high note, reaching 700 EH/s on February 28, signalling a strong and optimistic mining environment. The network difficulty also adjusted, rising from 79.35T to 81.72T in the same period as reported by CoinWarz.
Daily mining revenue in February reflects a clear growth in daily mining revenue, starting at approximately $40 million and rising to nearly $60 million by the end of the month, evidencing enhanced profitability in mining operations during this period.
In February Bitcoin miner industry prices (according to CryptoCompare):
Bitmain Antminer S19j Pro+ =$2,109.00
Bitmain Antminer S19 XP Hyd = $6,399.00
MicroBT Whatsminer M50S = $2,249.00
At Pantheon, we are proud that due to our scale and trusted partnerships, we are able to offer miners such as the Bitmain Antminer S21 Hydro (335T - 5360W) for $11,864 * including capex, + 1st and last 2 months electricity, in our fully managed data centres. *Minimum order quantities apply.
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The contents of this analysis are for informational purposes only and do not constitute investment advice. The analysis is based on the author's opinions and assumptions and may not reflect the actual state of the market or the future outcomes of any investment. The author is not a financial advisor and does not assume any responsibility for the accuracy, completeness, or suitability of the information provided.
Bitcoin investments are subject to high risks and volatility. The prices can fluctuate significantly due to various factors, such as supply and demand, regulatory actions, technological innovations, security breaches, hacking attacks, market sentiment, and global events.
Investors should be aware of these risks and conduct their diligence before making any investment decisions.
