February’s Forecast: Will Bitcoin Maintain Its Momentum After a Groundbreaking January?

Even though the prior month (and the commencement of the new year) started poorly, with Bitcoin firmly entrenched in fixed-digit price ranges, the asset succeeded in reversing course and established a new all-time high a few weeks ago.

All attention has now shifted to February, a month that has traditionally proven to be exceptionally lucrative for the largest cryptocurrency.

Robust January Conclusion

Recall that Bitcoin underwent a significant correction at the conclusion of 2024, with its value plummeting from $100,000 on December 26 to below $92,000 on December 30. After further volatility within the five-digit range, bitcoin welcomed the new year at approximately $93,500 (across most exchanges).

In less than a week, it surged past the sought-after $100,000 mark, only to experience a substantial rejection at this point that triggered a sharp correction. On January 13, BTC dropped below $90,000 for the first time since November amidst fears and uncertainty in the US political and economic landscape.

However, the bulls stepped in at this moment and prevented any additional declines, despite multiple alerts regarding a potential drop to as low as $75,000. Quite to the contrary, Bitcoin altered its course quite definitively and soared past $100,000 three days later.

More fluctuations followed on January 20, coinciding with Donald Trump’s inauguration day. Just hours prior to the much-anticipated event, BTC fell from $106,000 to below $100,000 but then skyrocketed by nearly ten grand to achieve a new all-time high exceeding $109,000.

This milestone was reached somewhat unexpectedly, and BTC didn’t remain there for long. Nevertheless, it managed to conclude the month within the six-digit range, finishing January with a 9.29% increase, as reported by CoinGlass.

What Lies Ahead?

With the first month of the new year officially recorded, the community has now focused its attention on February, a month that is historically among the best for Bitcoin. In fact, only two of the last twelve Februaries have concluded in the negative, the last being five years ago – in 2020.

Furthermore, the three that followed a halving year have yielded substantial returns – 61.77% in 2013, 23.07% in 2017, and 36.78% in 2021. Consequently, there’s much to be optimistic about for the upcoming month.

A bullish sentiment certainly prevails across the market, exemplified by the increasing volumes of USDT and USDC on exchanges, which generally indicates that investors are gearing up to enter the market.

Add to that, President Trump has signed an executive order to investigate the potential integration of specific digital assets into the US reserves, which could provide significant uplift to the markets if approved.