The cryptocurrency market continues to maintain its bullish start to 2023. The 37% surge in total crypto market capitalization in 2023 has sparked global interest. Retail and institutional investors now seeking insights about price predictions for February 2023 and how the crypto market will behave in the immediate future.
Drawing insights from crucial on-chain data on Bitcoin, Ethereum, and other cryptos, here are the biggest cryptocurrency predictions for February 2023.
Can Bitcoin Maintain Its Dominance and Price Surge in February 2023?
The Cryptocurrency market cap reclaimed the $1 trillion mark in January after lurking below $800 billion for the better part of the second half of 2022. The resurgence has been largely driven by the strong performance of BTC in January.
បន្ថយល្បឿន អតិផរណា and increased institutional demand all played key roles as Bitcoin domination gained 3% to reach a 7-month high of nearly 45%.
Similarly, the ETH/BTC price ratio has shown that Bitcoin has gained 30% over Ethereum within the same period. This shows that investors remain firmly gravitated toward Bitcoin so far in 2023.
The short-term bullish trend in Bitcoin dominance index has perennially displayed a positive correlation with uptrends in altcoin prices and the global crypto market cap. And conversely, huge drops in ឥទ្ធិពល BTC have also been synonymous with major downward crypto trends.
Bitcoin Holders Predominantly Hold between $22,000 – $23,000 Price
Bulls had predicted a run-up towards $25,000 in February. The wider crypto industry is poised to maintain its coveted $1 trillion valuation. Particularly if BTC holds its key $22,500 support point.
Of the 5 million unique on-chain wallets monitored by ចូលទៅក្នុងប៊្លុក IOMAP data sources. 36% of BTC holders In The Money are currently clustered around the $22,000 – $23,000 support point.
IOMAP stands for “Input-Output Market Analysis” or “In/Out of Money at Price” and is a technique used to make predictions about future crypto prices based on the unrealized profit or loss positions of the distribution of tokens holders on a blockchain network. Historically, Holders are most susceptible to selling off their tokens once the price hits their average break-even point.
Investors use IOMAP to identify crucial price levels where large buy or sell orders are likely to be placed by comparing the average cost of tokens held in specific wallets to the current Bitcoin market prices.
However, Bitcoin may face strong resistance in its march toward the $25,000 mark. Also, a sudden surge in Hash Rate and Bitcoin transaction fees could pose a serious threat to BTC dominance in February.
Bitcoin Hash Rate Spike May Trigger Another Miner Sell-Off នៅខែកុម្ភៈ 2023
Bitcoin Hashrate is rising due to soaring BTC prices which have caused more miners to swiftly join the network. The hash rate measures the total computing power used to mine a block of Bitcoin. It has soared by over 25% reaching an all-time high of 295m terahashes per second on January 30.
របស់ Bitcoin ហាន់ power signals its resistance to attacks. This offers a consistent rise in mining difficulty and also means that miners now have to compete for limited block rewards.
Mining difficulty is predicted to reach a new all-time high in February as even more miners begin to fire up their machines. Especially if Bitcoin continues to maintain its bullish trend.
However, the trading activity of Bitcoin miners could also significantly slow down the ongoing bullish trend. Miners currently hold around 10% of the total BTC in circulation. This means that the trading activity of miners is a significant driver of price trends in the short run.
On-chain data currently shows a 185% net decline in the balances of top miners over the last 30- days.
Mining Costs Climb Again
Historical data on Miner reserve balances— a metric that monitors the aggregate balances of addresses belonging to notable mining pools. i.e f2pool, Binance, Antpool, Viabtc, etc. —shows that large miners prefer to accumulate their block rewards during a bull run.
MacroMicro, a Cambridge University-affiliated analytics platform, provides Bitcoin mining cost data. By observing the global consumption of electricity and daily issuance of bitcoin.
However, the Average Cost of mining a block of bitcoin surpasses the BTC/USD price. Miners are incentivized to shore up their reserves. If the price of BTC is able to scale over the $25,000 mark, miner sell pressure could ease up significantly. Miner accumulation will put BTC in good stead for a sustained bull run in the first quarter of 2023.
Bitcoin NFTs May Push Transaction Fees Higher
Bitcoin transaction fees are on the rise. This is due to a newly-launched protocol enabling bitcoiners to mint hundreds of មិនមានផ្សិត tokens (NFTs) on the Bitcoin network for the first time. Previously, most NFT collections have primarily been issued on Ethereum and other EVM-compatible networks.
ក្បួន, a bitcoin-native NFT protocol launched in January has sparked a fee surge on the leading crypto network as hundreds of users start to mint digital artifacts.
បន្ទាប់ពីការចាប់ផ្តើម។ ក្បួន on Jan 21, 2023, average transaction fees on the Bitcoin network spiked above $1.50 as competition for block space hots up.
Bitcoin Average ថ្លៃប្រតិបត្តិការ measures the average fee in USD for each transaction processed by miners. Average Bitcoin transaction fees can spike during periods of congestion on the network, as they did after the launch of ក្បួន។
The fee spike has sparked a feisty debate in the Bitcoin community amid predictions of scalability issues and competition for block space.
Source: https://beincrypto.com/crypto-predictions-february-2023/