Ethereum Price Hits $2,000 As Bitcoin Bullish Run Continues
- Ethereum will continue to experience a bullish, so long demand for BTC continues to rise.
- BTC might maintain a steady price range around the $50K mark.
- MicroStrategy and a few large investors are still buying BTC heavily.
Ethereum (ETH) and Bitcoin (BTC) are the top two crypto assets on the path to a new peak price. Ethereum price just exceeded $2,000 for the first time despite having recent issues that caused high fees, which aided competition growth. However, BTC has exceeded $56,000 and remains a $1trn asset.
ETH Bullish Run Isn’t Likely to Stop Soon
At this current time (07:10 UTC), Ethereum price is steady at about $2,034, a slight correction from its all-time peak of $2,043. It has experienced a 5.6% price surge within 24 hours and about 11% within a week.
High ETH fees negatively impact this rally because Defi users choose the competition; they are choosing Binance smart chain and other more centralized chains. Even their competition now uses every available chance to criticize ETH. Unfortunately, there has been a recent decrease in the volume of ETH supply for trading:
- A little over a month, there was a 16% price jump for ETH locked in Defi, causing it to reach ETH 7.7m ($15.67).
- ETH within the ETH 2.0 deposit contract exceeded ETH 3m ($6.1bn); it has been locked in this deposit contract for many months.
- Since the grayscale Ethereum trust reopened earlier this month, it has received up to ETH 222,958 ($454m).
BTC’s Bullish Run Is Expected to Hit Some Volatilities
Conversely, after BTC hit $56,612 in the early hours of the day, it is now being traded at $56,025. That represents an 8% price surge within 24 hours and an 18% price increase within seven days.
In a correspondence via email, Jeffrey Wang, America’s Head of the Amber Group, said, “my sincere expectation was for BTC to reach the $50k levels, then retract a bit since it has been on an upward trajectory for the last three months. Thus, the media can get some news to discuss. Surprisingly, it continues to hold within the $50k range mostly because it has very solid demand. However, it will likely gather strength in the short-term, it will still some up and down volatility.”
Also, ChainAnalysis’ chief economist, Philip Gradwell, agreed with Jeffrey saying that Bitcoin’s availability to buy continues to decline despite rising demand, which indicates rising prices. These events result from exchanges experiencing low BTC inflows and high trade volumes as the price keeps surging.
“Exchanges may keep experiencing increasing trade-offs, such as over the counter brokers. Hence, exchanges might not be providing the complete details of the prevailing market conditions. From research within the second week of February, it would seem that top investors have sold a combined BTC 192,000 of their holdings.” Philip continued his analysis further.
Gradwell continued his analysis, saying that “we might be in a ‘wait and see’ period. Despite the top dogs being cautious, the retail demand on exchanges provide balance and this acts are often the result of the market’s momentum.”
Some Large Investors Are Still Buying BTC in Hopes of a Continued Bullish Run
In a contrasting development, MicroStrategy, a US-based software developer, and top bullish non-crypto company, announced yesterday that they bought more BTC by borrowing more than $1bn “for free.” it is proof of the large investors’ strong demand for it.
“It is clear that the current BTC trend will make some people extraordinarily rich. This happened previously in 2017 but that experience isn’t up to half of what is likely to be experienced now. Also, the current profits constitute half of all the profits ever realized.” – Gradwell.
In conclusion, Gradwell noted that suppose all the Bitcoin deposited in exchanges were bought at once then sold at withdrawal; the trade profits will be at least $78bn.
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