Is Bitcoin (BTC) Price On The Verge Of A Big Rally?

TL; DR

Bitcoin (BTC) has recently been experiencing significant underperformance compared to the performance of many altcoins. Indicators such as MicroStrategy's recent purchase of Bitcoin and certain on-chain indicators point to positive movement ahead for BTC. Bitcoin's hashrate has hit a new all-time high, signaling increased network security and potential investor confidence, even as it comes with higher operational costs for miners.

Is the BTC Consolidation Ending?

Unlike some alternative coins like Solana (SOL), Binance Coin (BNB), Polkadot (DOT), Polygon (MATIC) and others, Bitcoin (BTC) has not been able to register any recent gains. The price is currently below the $43,000 level (according to CoinGecko), showing a weekly decline of 3%. This has reduced its dominance in the market especially in the last few days.

However, various factors suggest that BTC may start rallying in the near future. One example is MicroStrategy's recent purchase of Bitcoin. The organization obtained Earlier this week, an additional 14,620 BTC worth approximately $615 million, bringing his total holdings to 189,150 BTC.

According to Sentiment, that could create excitement among investors and trigger a bull run – based on similar past performance. Analytical organization He remembered This Bitcoin began a significant climb shortly after MicroStrategy's initial purchase in late November. Let's remember that the price was around 37,000 dollars a month ago He was elevated. A few weeks later, over $44,000.

Another development that points to the possibility of growth for BTC in the near future is the recent influx of foreign exchange. CryptoPotato reports that more than 28,000 BTC (more than $1.2 billion at current rates) left centralized trading positions on December 27, the most amount in a year.

Switching from the exchange to self-sustaining methods can be considered bullying as it reduces immediate sales pressure.

BTC Hash Rate Hits ATH.

Bitcoin Hash Rate – an indicator of the computational power used by miners to process and verify transactions on the BTC blockchain – recently Sharp Up to 544 exahashes per second (TH/s) to peak. The benchmark is still above 520 TH/s, although it has pulled back a bit in the coming days.

The increased hash rate indicates the security of the BTC network, making it more resistant to attacks. Such a development can lead to more confidence and greater demand among investors. It is a basic economic principle that when demand exceeds supply, prices rise.

However, the opposite effect is also possible. An increase in hash rate means higher operating costs for miners, and some may decide to sell a portion of their hash to cover costs. At this point, supply grows and can negatively impact property values.