Bitcoin started February slowly with many expecting small increases following the previous month’s performance. However, the apex coin gradually picked up momentum. As a result, it surged to levels many never expected. Let’s look at fundamentals and how they progressively affect prices.
Towards the start of peak momentum, reports had it that on-chain data suggested an impending decrease in BTC supply in the coming days. This was because the amount of the asset in exchanges dropped to 1.84 million amidst increasing demand. It is no surprise that demand for the top coin is growing significantly.
Institutions continue to invest in the largest cryptocurrency. The latest firm to do this is Reddit. The American-based social network revealed in a Security and Exchange Commission (SEC) filing that it invested some of its excess reserves in bitcoin and Ethereum. The filing also stated that the firm wanted to become a public stock.
Another company to invest in the top asset is a long-term investor, MicroStrategy. It announced that it had increased its BTC holding by 3000 coins. While many frowned at the purchase, others claimed that it made the purchase at the top and the asset was due for correction.
In the same vein, a few weeks ago, a massive flow of $598 million entered crypto investment products, with about 85% of them on Bitcoin-related funds. However, the outflow was almost 90% of the influx. Grayscale led outflows as about $436 million moved out of crypto investment products.
In response to the increasing price, many bulls shifted their predictions to a higher one. Peter Brandt is one such analyst. He raised the bull run target for Bitcoin from $120,000 to $200,000 after the digital asset reached a new high last seen in November 2021.
Aside from the increasing headline of the coin breaking gaining more attention. It is also worth noting that the effects on price is very high.
Bitcoin to end February With Gains of 43%
Bitcoin price started picking up momentum on the seventh day of the month. During this session, it gained almost 7%. The uptrend continued and three days later, it tried breaking its fourteen-day high but failed as it faced massive rejections at $48k. Due to this, it retraced to a close at $47k which meant it gained 4%.
It finally broke the fourteen-day high on the twelfth day as it tested $50k for the first time in more than a year. Two days later, it went $2k higher. Since this surge, BTC has not dropped below $50,000. In the wake of this trend, it found a new support at $50,800.
Trading actions from February 26 were some of the most bullish. On the said date, the apex coin gained more than 5% as it tried testing the $55k resistance but failed. However, it peaked at $54,900. The next day saw the highlighted mark break with the asser hitting another brick wall at $57,500.
February 28 presented the mother of all surges as BTC rose to a level not seen since 2021. It climbed to a high of $64k but dropped to a close at $62,512 which meant it gained more than 9%.
With this splendid performance by the apex coin, the effect on the monthly scale is astronomical. For the first time since 2020, Bitcoin gained a whopping 43% in one month.
