Bitcoin had a huge run-up this week, up 12% on the week as bullish sentiment returned to the crypto space. This increase took place despite the ongoing inflation of Bitcoin mining costs and the sustained accumulation by large stakeholders, or “whales.” The overall bullish trend of Ethereum, XRP, and Dogecoin is notable. This pattern suggests that we might be in for a repeat of the crypto market’s cyclical behavior.
Bitcoin's recent performance aligns with crypto analyst Alex Wacy's observations of its cyclical behavior, driven by improving sentiment and shifting macro signals. This surge has led some speculators to start betting on an approach to Bitcoin’s $100,000 ceiling. Given the rising production costs miners are facing from spiking energy prices among others, bitcoin’s current market price has proven to be quite resilient.
Perhaps most strikingly, Bitcoin mining costs increased drastically during the fourth quarter of 2024. The all-in sustaining cost to produce one Bitcoin, which even factors in non-cash items such as depreciation and stock-based compensation, is $137018. This dramatic increase has the effect of putting extreme financial strain on miners, though this has not translated into a reduced market price of Bitcoin—so far.
The bullish signals keep piling up! Senator McCormick, a member of the Digital Assets Committee, increased his own investment in Bitcoin ETF shares ahead of the vote. At today’s Bitcoin price, McCormick’s current total investment in Bitcoin is worth between $375,000 and $850,000. The underlying reason for this move is the progressing state of confidence in digital assets. It suggests that 2025 will be a key year for the crypto market.
The past week was very turbulent, but in the end was a boon for the entire crypto space. Bitcoin, Ethereum, XRP, and Doge were all on the rise over the weekend. Many industry analysts suspect that we are in for a time of market consolidation before the next big push. Whales still keep accumulating Bitcoin and other cryptocurrencies, showing the strongest faith in the long-term potential.
