CryptoCompare’s new report for February 2022 has been published. One of the main points that emerged from this analysis is the interruption of the downward trend in the price of Bitcoin.
Bitcoin reverses trend
This downward trend had started in the aftermath of the new all-time high of $69,000 on 10 November 2021.
During February, however, Bitcoin recorded a 12.2% increase, making it the first month to close in positive territory after three months of consecutive losses. This increase, however, was mainly concentrated on the 28th of February, when the price of Bitcoin broke through resistance on the 50-day moving average to close the month at $40,329.
Furthermore, although the Bitcoin price trend in February 2022 has been mixed, it has tried to decouple itself from that of the stock market as most digital assets have seen positive returns while equity indices have fallen.
So it was a markedly different month to the previous three, both in terms of stopping the decline and decoupling from the stock market.
Moreover, the first few days of March are now confirming this new trend.
The market remains bearish
As far as Ethereum is concerned, the most significant figure was the 46.7% reduction in total transaction fees, which fell to $715 million. This is the largest monthly drop in this metric in the last 12 months, and the first time monthly commissions have fallen below $1 billion since August 2021.
In terms of other cryptocurrencies, the report shows that the number of addresses on which ADA (Cardano) have been held for more than a year has grown by 32.1%, reaching a new all-time high at 408,000. The number of addresses that have had ADA for at least one month, but less than a year, grew by 13.4% to 3.62 million.
On the DeFi side, an interesting figure is that of the decentralized lending protocol Solend, which grew by 7.94% to reach a TVL of $583 million, making it the fifth-largest protocol in the Solana ecosystem.
Overall, three-month returns look to be down more than 22% for the five major cryptocurrencies, with SOL leading the way with -52.1%, followed by ADA with -37.9% and ETH with -37.0%.
The period as a whole therefore remains bearish, but at least the downward phase has been interrupted. It remains to be seen whether a new bull run can now be triggered or whether a lateral move is to be expected in the short term.
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