It remains barely 3 days to the close of February. The month of February was indeed a remarkable one for top cryptocurrencies, Bitcoin, Ethereum, and Cardano being characterized by a number of high points.
On Feb. 19, Bitcoin (BTC) market cap pushed above the $1 trillion markets for the first time. An unprecedented wave of demand from institutions spurred by Tesla’s Bitcoin buy-in pushed the largest cryptocurrency to new all-time highs of $58,367 and also a new market cap. In the history of financial markets, there are only a few tradable assets that have reached this milestone. Bitcoin is currently ranked eighth in terms of market capitalization among all traded assets in the world, including stocks and commodities. Bitcoin is just one step away from surpassing Google and two steps away from Silver.
Elon Musk also embraced the latest “laser eye” meme to the joy of hodlers who were elated about Bitcoin’s strides.
The second-largest cryptocurrency, Ethereum had its CME Ether Futures launched on Feb. 1st. Ethereum also attained new all-time highs of $2,041 on Feb 20. Before entering into a correction.
Another highlight of the month was the Kraken ‘flash crash’. Within a minute, the ETH/USD pair on Kraken fell to $700 on Monday, February 22nd, from $1,628 just three minutes before. Ethereum was not alone in the spectacular drop, Cardano (ADA) also suffered such fate on Kraken, with ADA/USD falling to $0.156 from $0.842 three minutes before. ETH and ADA prices fell less than half compared to prices on other exchanges during Monday’s massive selloffs.
ADA/USD Daily ChartThis is not the first time Kraken is seeing this kind of “flash crash”, Trustnodes noted a similar issue in 2018. The report indicated that such incidents usually occur in a “fat finger error.” when a trader accidentally entered the wrong number during a trade.
For Cardano (ADA), the month has been a remarkable one. ADA remains in a strong uptrend and has broken into the top-three cryptocurrencies by market capitalization for the first time. ADA also traded to yearly highs of $1.26 on Feb. 26.
On Feb. 22. Bitcoin (BTC) kickstarted a correction that triggered a major downturn throughout the entire market. Bitcoin price plunged severely from highs of $58,367 to reach lows of $44,888. Ethereum price also fell under intense pressure, plunging to lows of $1,356 from recent all-time highs of $2,041. This isn’t far-fetched as historical data reveals the end of February usually highlighted a corrective phase for the crypto market.
While history may not always repeat itself, but history rhymes and historical data often provide insight into how market cycles work. This history could be read from Bitcoin’s weekly chart. A renowned analyst highlighted that previous data from BTC weekly chart indicated that March tends to be a period of correction or consolidation.
BTC/USD March 2020 LowMassive corrections occurred during the month of March in 2017, 2018, and 2020, while 2016 and 2019 saw sideways range price action. In March 2020, Bitcoin had a black swan event that caused it to shed nearly 50% of its value, hitting bottom lows of $3,800 in the process.
One thing to note in this kind of prediction is that there are no absolutes. the trend of institutional buying coupled with a shift towards cryptocurrencies following Visa and Mastercard increased fees amid inflation concerns may alter the trend pathway previously set in March.
Other variables may be incoming US stimulus checks and, according to Deutsche Bank strategists, they could unleash a $170 billion wave of fresh retail inflows to the stock market. Their survey also discovered that 37% of retail investors planned to put their stimulus cash directly into equities.
Cardano (ADA) protocol, announced that the “Mary” protocol update will be applied to the mainnet on March 1. The update could see ADA’s remarkable recent price drive continue even further.
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