After the crypto rally in January, the market continued showing green numbers in February, albeit only for the first half of the month. In the first two weeks, the crypto market appreciated by an additional 33.8%. On 15 February, the market experienced its highest yearly market cap level of $309 billion. Thereafter, the correction phase started, and the majority of cryptocurrencies began showing red numbers. In the second half of the month, the crypto market lost 25.9% and ended February with a nearly stale performance of -0.8%.

Bitcoin started the month at $9,348 and fluctuated between $9,200 and $9,500 for the first five days. On 6 February, the Solidum Bitcoin Momentum strategy generated a buy signal, indicating a possible upward momentum. As a result, the Investment Committee decided to open a 200% leveraged position. The following day, Bitcoin broke past the $9,500 price level and continued to gain enough momentum to also surpass the $10,000 resistance level by the end of 9 February.

On 17 February, after Bitcoin dropped below the $10,000 mark, the strategy exhibited a sell signal. As a result, we closed the leveraged position and shifted to a more conservative structure, with 100% of the portfolio invested in stablecoins. After several failed attempts to secure its position above the $10,000 price mark, Bitcoin finally lost ground on 19 February, falling from $10,150 to $9,605 in a single day. Thereafter, Bitcoin hovered around $9,900 and $9,600 until 25 February. The following day, however, large sell orders pushed Bitcoin’s price below the $9,000 support level. Bitcoin continued to depreciate until the end of the month, recording a monthly low of $8,524 and ending February at $8,599.

Bitcoin ended February with a monthly performance of -8.03%, whereas the Solidum Bitcoin Momentum Strategy outperformed Bitcoin in February, with a monthly performance of -4.12%.

Chart 1 (SOBM & BTC)

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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.

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