Bitcoin had a strong last day of February, reaching an intraday high of $41,284. Since rising to a high of $41,760 on Feb. 4, bitcoin has hit its biggest green candle since Feb. 4.
Price action for major cryptocurrency assets was mixed in February, falling to a low of $34,424 on Feb. 24. At press time, bitcoin was changing hands near $41,009, up nearly 9% on the day. Earlier, the price fell to a low of $37,468 before rising. Despite the mixed price action in February, bitcoin is up 7.08% for the month. CEO Jamie Iannone said in a recent interview that Bitcoin has seen a piece of good news as major e-commerce marketplace eBay may soon integrate cryptocurrency payments.
Cryptocurrencies also rallied along with BTC, with most gaining between 2% and 10%. According to Coinmarketcap, Terra (LUNA, +10%), Safemoon (SAFEMOON, +15%), and Nucypher (NU, +15.51%) are up significantly in the last 24 hours.
Two factors that could boost the price of BTC
Cryptocurrency analyst Michael van de Poppe thinks the price of bitcoin could rise further, saying, "Strong movement in bitcoin. It looks like upward movement is the way to go in the coming week." Two other factors could push bitcoin prices higher in the near to medium term.
Bitcoin as a Hedge Against Inflation The increase in inflation expectations is usually associated with rising cryptocurrency prices. Charlie Bilello, founder and CEO of Compound Capital Advisors, tweeted that the Federal Reserve's balance sheet hit another record high of $8.93 trillion, more than doubling in the past two years, as the Fed continues to buy bonds. The U.S. inflation rate also reached a 40-year high this month.
Retail holders rise Glassnode, an on-chain analytics firm, reports that most bitcoin wallet groups are now in a net position to increase their holdings, with smaller holders being the most aggressive. Retail investors appear to be acquiring bitcoin tokens at a discount shortly after the whales took action, as there is currently market volatility in the cryptocurrency's short-term price action.
On-chain analytics firm Santiment earlier reported that whales increased their holdings of bitcoin by a significant amount when it fell to a low of $34,322, noting the largest volume involving more than $100,000 and $1 million since Jan. 24.
IntotheBlock analytics reports that bitcoin "hodlers" held for more than a year are also increasing their holdings." BTC "hodlers" continue to increase their holdings. the balance of hodlers holdings – addresses held for more than 1 year, increased by 4.13% over the past 30 days.11.78m BTC belongs to these addresses"