Bitcoin climbed to intraday highs of $39,300 on Feb. 1, signaling a shift from the gloomy mood. The lead asset kickstarted February on a positive note after a negative January. Bitcoin was trading at around $38,688 at the time of writing, recouping losses over the previous seven days and up nearly 5% in the last week.
Ethereum touched lows of $2,159 on Jan. 24 before kickstarting a rebound. Ethereum is set to mark the second consecutive day in the green amid the recent upward movement. Due to the volatility experienced in January, Ethereum saw its worst monthly price drop since March 2020, collapsing with Bitcoin, in one of the worst-ever starts to a year in cryptocurrency markets. In January, the price of Ethereum decreased 26.83%, while the price of Bitcoin fell 16.7%.
Positive news for Bitcoin comes in at the start of February regarding MicroStrategy’s latest Bitcoin acquisition. Business intelligence firm MicroStrategy purchased another $25 million worth of Bitcoin over the period from Dec. 30, 2021, to Jan. 31, 2022.
According to the company’s recent regulatory filing, it bought 660 Bitcoins at an average price of $37,865 bringing its stash to a total of 125,051 Bitcoins that are worth approximately $4.8 billion. The company’s average purchase price stands at $30,200 per coin.
WazirX (WRX) rose nearly 50% on favorable sentiment as India moves to legalize Bitcoin and proposes a 30% capital gains tax on digital assets. In a budget speech on Feb. 1, 2022, Indian Finance Minister Nirmala Sitharaman released a plan to introduce digital assets regulation while a Rupee-pegged CBDC will go live in the upcoming fiscal year.
Solana is outperforming the top 10 in 24-hour gains as Solana Pay, a decentralized, secure, and open-source payments protocol Launches. Solana Pay makes it easy for merchants worldwide to accept digital dollars like USDC, and any other Solana SPL Token, for a fraction of a penny and without any intermediaries.
Canada (CRA) is a crab-themed play-to-earn NFT game on Avalanche, where players assemble a team of three Crabada to earn the in-game currency Treasure Under Sea (TUS). Canada has risen nearly 200% since Jan. 27 as it’s set to mark the sixth consecutive day in the green.
Positive fundamentals including hitting an ATH of 2.85k total unique wallets have contributed to a rise in Canada’s price.
After a negative January, investors continue to seek clues on what holds for Bitcoin and the rest of the cryptocurrency market in February. The fact that Bitcoin has historically produced positive returns in February may provide some relief to bullish traders.
February has historically been a positive month for Bitcoin, recording gains in 8 out of 11 instances since 2011. Averagely, the price of BTC rose by nearly 29.3% in February. Generally, equities also perform well during the second quarter, which implies investors might begin to increase their exposure to speculative assets.
The month of February however tends to be that of moderate returns for the second-largest cryptocurrency Ethereum (ETH). The average return for Ethereum in February since 2017 is 26%.
While there seems to be much to expect in February, investors should note that historical returns may not be a guarantee of future returns. Crypto analyst, Lark Davis gives a list of Top 5 crypto coins to watch in February as Bitcoin, Avalanche, Joe, BreederDAO, and Solana.
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