Bitcoin’s January Blues: Can February Bring the Comeback?

The Rocky Start to 2022

Bitcoin (BTC) kicked off 2022 with quite a whimper, suffering a 20% decline in January, marking its worst monthly performance since 2018. Back then, it was worse, with the price diving 26.61%. For investors, this had to feel like déjà vu, but thankfully, we aren’t time travelers, so we can’t go back and readjust our portfolios!

February: A Historically Bullish Month?

As we turn the page to February, the cryptocurrency world holds its breath. Historically speaking, February has favored the bulls, leaving just two negative closes in the past: 2020 and 2014. Talk about a “history repeats itself” situation! Can we crowdsource some good vibes for Bitcoin this month?

Long-Term Investors: Staying Strong

Amidst the chaos, one glimmer of hope comes from the long-term holders, often referred to as ‘hodlers.’ Data from Glassnode reveals a significant uptick: the number of coins last moved between five to seven years ago has reached a new record high! These seasoned investors must be sipping organic teas and practicing yoga as they watch the price fluctuations with a calm demeanor.

El Salvador’s Wishful Thinking

El Salvador’s President, Nayib Bukele, isn’t shying away from optimistic chatter. He forecasts a “gigantic price increase” for Bitcoin. This prediction hinges on a tantalizing thought: if the world’s millionaires—over 50 million strong—decide they each want a Bitcoin, the supply might just play hard to get. It’s like trying to shop for Black Friday deals, but suddenly, all the products are sold out.

What Lies Ahead for Bitcoin and Altcoins?

As we inch into February, the big question remains: will Bitcoin and major altcoins end the month on a high note? To get to the bottom of that, we’ll need to study the charts of the top ten cryptocurrencies like seasoned detectives. Will the bull market charge in with its cape flying or will it take a coffee break? Stay tuned!