Markets update: bitcoin seeks new highs after two consecutive months on the rise

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The price of bitcoin (BTC) closed August with an appreciation of 13.4% to complete two consecutive months of rebound. In total, the pioneering cryptocurrency has managed to advance 35% in those two periods, while trying again to leave behind the psychological barrier of USD 50,000.

In the last seven days, several reports from cryptocurrency market analyst firms agree that investors are preparing for a rally.

Specifically in the case of bitcoin and ether (ETH), Ethereum’s cryptocurrency, a report by Glassnode, commented by CryptoNews last Wednesday, September 1, argues that there is a trend of decreasing transfer of the young coins

, on both networks. This behavior of coins less than three months old is interpreted as an increase in the accumulation of such coins.

In the same report, there is a decrease

in daily transactions of Bitcoin and Ethereum of 37% and 27%, respectively, as reported by this newspaper. As for fees, the behavior is opposite in the two networks; while in Ethereum they have risen along with the momentum of non fungible tokens (NFT), the trend of the cost of fees in Bitcoin is decreasing.

Bitcoin Aims for USD 60,000

Analyst Willy Woo states in a recent bitcoin market report, reviewed by that media outlet last Thursday, that new data on the fundamental parameters of the Bitcoin network point to a price consolidation around USD 50,000. Once there is a clear breakout from this price level, bitcoin could reach USD 60,000

, the analyst notes. This would take the market back to mid-April levels.

While the market seems to expect the culmination of bitcoin’s current cycle to occur this year, Woo notes that he has hard data that would indicate that the pioneering cryptocurrency will continue the upward momentum into 2022. If that prediction materializes, it would be breaking the pattern of 4-year cycles in bitcoin’s price performance, the analyst argues.

alto-historico-estabilidad-precio-bitcoin <img width=”705″ height=”411″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/estabilidad-precio-bitcoin-cerca-alto-historico..jpg” alt=’historical-high-stability-price-stability-bitcoin’ /> For Willy Woo, there is a possible target of BTC at USD 60,000 in the short term. Source: charts.wobull.com

In his latest newsletter for subscribers, published this Saturday 4, Woo highlights that a new rise in the price of BTC would be closer than expected, as reviewed by CryptoNews. The analyst sums up the near-term price action as follows: “Expected price action: a bullish breakout starting this week followed by a strong move to USD 60,000.” At the time of writing this article BTC is trading at USD 51,840, according to the CryptoNews price calculator

.

Value of bitcoin industry companies reaches 2 million BTC

The aggregate of companies in the bitcoin industry and other cryptocurrencies listed on stock exchanges represent a market value

of

USD 94,547 million, according to a study by CoinShares, reviewed by CryptoNews. This is equivalent to almost 2 million BTC, if we consider the price of bitcoin at the time of writing. These companies include mining firms, exchanges, and manufacturers of mining equipment and hardware devices for the bitcoin industry.

Among the most well-known publicly traded bitcoin companies are Coinbase, Marathon, Silvergate, Canaan, Ebang, and Northern Data. Coinbase, which has been listed on the Nasdaq

since April 14, has the largest market capitalization, a metric of USD 72.4 billion.

The featured chart of the week

Regarding the top two cryptocurrencies by market capitalization, this Bloomberg chart shows the price growth of BTC and ETH. In the case of the latter cryptocurrency, Bloomberg matches the start of ETH’s growth curve, in Q3 2015, with bitcoin’s price trajectory.

Markets update: bitcoin seeks new highs after two consecutive months on the rise Markets update: bitcoin seeks new highs after two consecutive months on the rise In yellow and white are the price growth trajectories of Bitcoin and Ethereum. Source: Bloomberg Intelligence.

Overall, ETH’s appreciation has outpaced BTC’s over much of its trajectory, although the second cryptocurrency’s best performance was seen in 2017-2018.

BTC and ETH’s long-awaited all-time highs

In the last 7 days BTC’s price has moved around USD 50,000, while ETH surpassed USD 4,000 again and approached the peak

4,362

, which it reached on May 12, as reported by this media outlet. While ETH is almost 11% away from its all-time high, BTC is 29% away from the coveted goal of USD 64,656. There is an intermediate milestone for BTC, before reaching a new all-time high: surpassing USD 53,000, thus again surpassing USD 1 trillion in market capitalization.

Ethereum’s advantages over Bitcoin

While Bitcoin continues to largely dominate the cryptocurrency market in terms of its market cap, Ethereum has been growing as an ecosystem for decentralized finance applications (DeFi) and non-fungible tokens (NFT), which have seen explosive growth this year.

Markets update: bitcoin seeks new highs after two consecutive months on the rise Markets update: bitcoin seeks new highs after two consecutive months on the rise The volume traded in NFT in August grew 315% month-over-month and 1,103% over June. Source: DappRadar

In an article addressing various aspects of the activity of the two major cryptocurrency networks, CryptoNews published an outlook on the growth of DeFi and NFT-focused apps. Two facts: the total locked value on DeFi platforms is about to reach USD 100 billion, while ETH and BTC locked in different apps reach 7.8 million ETH and 202,700 BTC (wBTC are included). Measured in fiat money, this means that there is 4 times more value locked in ETH than in BTC on DeFi platforms.