Crypto Market Outlook: February Set to be Worst Month in Years for Bitcoin and Ethereum

Bitcoin (BTC) and Ethereum (ETH) are set to wrap up a rough month, with BTC dropping over 7.8% to $86,774.59 and ETH plunging 9.47% to $2,403. Should both close the month at current levels, it would be their worst February in years.

Changing Landscape of Altcoins

Crypto trader Pentoshi believes the days of explosive altcoin rallies, like in 2017 and 2021, may be gone for good. “I think for alts, we will never see a run like 2017 / 2021 again. But I also said that previous to this run,” Pentoshi explained, suggesting that the crypto market has simply grown too large.

Pentoshi also sees the next big speculative bubble happening outside of crypto, likely in the Robotics/AI sector. “50% of the global GDP is labor, a 50T annual market as Kang pointed out.”

New Bull Market

Bitcoin’s halving events have historically driven massive bull runs, but this time, things may be different. Pierre Rochard, vice president of research at Riot Platforms, sees a shift in how the market reacts.

“Historically, halvings dramatically reduced bitcoin’s new supply and sparked parabolic price increases. However, with each halving, the relative reduction in freshly minted bitcoin decreases, making this fourth halving a smaller shock to the market.”

Rochard expects a slower, more stable climb, “align[ing] with underlying demand, rather than the sharp run-ups and crashes of the past.” He also notes that changes in U.S. policy under President Donald Trump could provide a more favorable regulatory environment for Bitcoin.

Correlation with Equities

According to BlockTower Capital’s co-founder Ari Paul, equities are in for a rough ride. “My market take: equities in for 4-15 months of pain (I’ll guess 9 months) tied to deflationary government policies.”

Paul sees Bitcoin as a mix between gold and stocks, suggesting that BTC will continue to act “like a blend of gold and S&P 500.” He predicts a possible dip before the next leg up, admitting that a retrace to ~$73,000 “seems plausible.”

Big Picture

Despite recent price drops, the crypto community doesn’t seem ready to give up just yet. Instead, investors see a maturing market with more institutional adoption, better regulatory clarity, and a more sustainable growth trajectory.

Key takeaways:

  • Bitcoin and Ethereum are set for their worst February in years, but analysts remain bullish in the long term.
  • The crypto market has grown too large, making it harder for altcoins to see the same kind of wild gains from previous cycles.
  • Macro-economic trends could lead to volatility, but many expect Bitcoin and Ethereum to keep proving their value in the long run.
  • Changes in U.S. policy under President Donald Trump could provide a more favorable regulatory environment for Bitcoin.

For more news and updates on the crypto market, visit Global Crypto News.

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