Bitcoin, Ether on Track for Modest February Gains Despite Earlier Plunge
Bitcoin and Ether are expected to record moderate gains for the month of February, despite incurring a large loss earlier in the month. The biggest month for Bitcoin since 2021, January saw 38% growth, and according to Coin Metrics, February will see a gain of roughly 1%. On the other hand, ether has increased by about 3% this month after rising by 31% in January. Investors’ early worries about a government crackdown on cryptocurrency businesses in the US led to a brief sell-off in crypto assets, but the market quickly recovered, and the bad news had no long-term effects.
Last month, reports arose that Hong Kong is considering legalizing retail cryptocurrency trading as part of a larger effort to establish itself as a major worldwide centre for the industry.
China, which has been a proponent of cryptocurrencies, is said to be behind this move. Bitcoin and the larger crypto market have not been as affected by macro events as they were earlier in 2022, despite the fact that investors are currently keeping an eye on the Fed. After having their greatest Januarys in four and 22 years, respectively, the S&P 500 and Nasdaq Composite are also expected to have drops in February. Despite this turnabout, the impact on cryptocurrencies has not been as great as it has on other traditional asset types.
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