Best month since 2020
The crypto market continued its recent upward trend this month. As the February is ending, we can safely say that Bitcoin is concluding its most successful month since 2020, while Etherium since 2022.
Bitcoin saw a 3% increase to reach $62 000 today, on 29th February. Its price surged to $64,000 briefly on Wednesday before experiencing a slight pullback to around $60,000 due to a wave of long liquidations. Other currencies saw gains too this week. Ether saw a 4% surge to hit $3,400. Tokens associated with Ethereum competitors, Solana and Cardano, also experienced notable jumps of 18% and 7%, respectively.
February witnessed huge growth for the two major cryptocurrencies, especially after a relatively unceremonious January. Bitcoin recorded a nearly 45% gain for the month, marking its sixth consecutive monthly increase and its best performance since December 2020. Similarly, ether saw an increase of over 47%, also marking its sixth consecutive monthly advance and its strongest month since July 2022.
Two main reasons
ETF: The surge in February has been attributed to various factors, including the introduction of bitcoin exchange-traded funds (ETFs) There was an influx of over $2 billion into various bitcoin ETFs, which has increased the demand for bitcoin and subsequently pushed prices higher.
Halving: Upcoming bitcoin halving is another contributing factor to the recent momentum in prices. The halving, a programmed event in the bitcoin code that halves the bitcoin reward supply, is expected to take place in April. Historically, such halving events have led to an increase in bitcoin prices, creating a belief among investors that a similar price appreciation will occur this time.
February
February traditionally tends to be a strong month for both bitcoin and ether. Bitcoin has closed 10 out of the last 12 Februarys in the green, with an average return of 15.7% for the month, according to CoinGlass. Similarly, ether has seen gains in seven of the last eight Februarys since its inception, with an average February gain of 17.2%.
