Bitcoin (BTC) returned at over $38,000 on the last day of January as selling pressure is apparently wearing off after a rocky start to 2022.
Historically, bitcoin has positive returns in February, which could give traders some hope as technical indicators suggest short-term buyers could stay active around the $35,000-$37,000 support area, but upside looks to be limited toward $45,000. Despite the recent spike in price, some analysts are still skeptical of BTC due to the Biden administration preparing to release an executive order in February to regulate bitcoin as a matter of national security.
It’s hard to predict if the new regulations will have a positive or negative impact on the digital coin, so the crypto market remains highly volatile. Even though history points to positive returns in February, bitcoin could end up falling for a third consecutive month.
Bitcoin in February
Bitcoin produced an average return of 12% in February throughout the past nine years. The second month of the calendar finishes with a gain over 85% of the time.
As the crypto market stabilized to end January, investors poured 22.1 million into bitcoin-focused funds last week, the second consecutive week of money inflow into BTC. Despite one of its worst-ever starts to a year, crypto funds saw inflows of $19 million during the seven days through January 28.