The Bitcoin price marks its 5th consecutive month of gains in January. This is only the 4th time that Bitcoin has achieved such a performance: could this be the first step in the next bullrun?
Bitcoin has recorded 5 months of gains, the first time since 2021
January marks a 5th consecutive month of gains for the Bitcoin price, a performance reminiscent of the cryptocurrency market’s heyday. With the exception of its early years, this is only the 4th time that BTC has achieved such a performance.
The 1st occurrence took place during the 2017 bull market. This movement had then begun in April, with a starting price of $1,080, some 13% below its previous all-time high (ATH) reached more than 3 years earlier. In the space of 5 months, its price had then been propelled to 4,730 dollars.
Bitcoin price showing periods of 5 consecutive months of rise
The 2nd time marked the end of the 2018 bear market. This rebound had begun in February 2019 at $3,400, and had taken the Bitcoin price to $13,870 5 months later.
The 3rd time was even more impressive, with not 5, but 6 consecutive months of rise. The Bitcoin price had risen from $10,800 to $61,800 by March 2021.
At the time of writing, this 5-month rise has marked the crossing of the $32,000 resistance level, which has now become a support.
What has pushed Bitcoin so high?
Bitcoin’s recent rise is mainly attributed to the appeal of Bitcoin spot ETFs. Applications for these ETFs were submitted in June 2023, signalling a sustained bullish recovery.
This recovery, timid at first, consolidated as the SEC’s final deadline approached. This optimistic momentum was given a second wind when the analyst consensus was around a 90% chance of approval by the regulator.
As a result, Bitcoin soared from around $26,000 in October 2023 to $49,000 on January 11, 2024, the day after the ETFs were officially approved.
Another little-mentioned aspect of Bitcoin, which impacts investor sentiment on the market’s 1 cryptocurrency, is the development of Bitcoin mining and the increase in its hash rate. An aspect of Bitcoin to be set alongside halving, which is now fast approaching.
Bitcoin hash rate since 2020
If there’s one graph that accurately represents the adoption of Bitcoin, it’s the hash rate.
An increase in the hash rate means that more miners are joining the network by putting their computers to work, resulting in improved network security. This in turn reassures and attracts investors.
Since 2020, the hash rate has increased 6-fold, from 100 to 600 EH/s. This increase continues uninterrupted, even during periods of falling Bitcoin prices.
What’s more, the growing mining industry bears witness to the democratization of Bitcoin mining in optimizing the power grid and increasing the profitability of renewable energies.
