Cryptocurrency investors have enjoyed unparalleled returns over the past 12-months, with Bitcoin rising to dizzying new heights of $41,800 while Ethereum recently formed a new all-time high above $1,600.
The rally has been spurred by a wave of institutional investment from the likes of Square and MicroStrategy, as well as an uptick in retail engagement in the nascent asset class.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) February 3, 2021
Bitcoin is currently trading in a consolidation pattern at around $36,500 after bouncing from the $30,000 level of support on three occasions.
However, just like in 2017, 2013 and 2012, all bull markets eventually come to a bitter end in the form of a market correction.
While several analysts and investors are calling for Bitcoin to print a new all-time high above $50,000 and even $100,000, it’s worth noting that it needs another fresh wave of capital from institutional investors or mania among retail for it to even be a faint possibility.
Major events in February
This month will see Bitcoin and the wider cryptocurrency market decide whether it is time for a correction, or whether it is time for another parabolic charge to the upside.
There are a number of news events in February that may dictate price action, such as XRP’s lawsuit with the SEC and Ethereum’s listing on the CME.
Ethereum futures being listed on CME is perhaps the most intriguing event this month, many believe that it will allow institutional traders to invest into the world’s second largest cryptocurrency, but it’s worth pointing out that it also gives these traders an opportunity to short an asset that has just risen by more than 100% in one month.
In December, 2017, Bitcoin secured its listing on the CME following a year that saw it rise from $1,000 to $20,000.
Bitcoin eventually crash on the listing, causing shockwaves among the wider market as it marked the first signal of a cryptocurrency bear market that lasted for two years.
There is also expected to be news from the Tether camp in connection to its lawsuit with the NYAG, with a submission deadline being set on February 14.
A positive outcome will quell fears amongst the cryptocurrency community, potentially leading to more continuation to the downside.
However, if the NYAG decides that any wrongdoing has taken place on Tether’s part, it will likely be the catalyst for a major correction.
For more news, guides and cryptocurrency analysis, click here.