The Monthly Report

Bitcoin and Markets - Feb. 2023

Flat February

Bitcoin cooled off in February after gaining 30% in January. It was a “flat February” with bitcoin opening at $23,137.84 and closing at $23,147.35.

All markets, not just bitcoin, saw corrections last month. The January rally that seemingly came out of nowhere ran head-on into less than desirable inflation numbers and more recession fears. In the US, the Nasdaq shed 6%, the S&P shed 5%, and the DOW shed 3%. Beyond inflation data and increased recession talk, markets were likely due for some type of correction after a red hot January.

A flat February and a boring bitcoin is fine by me. Volatility in either direction tends to draw too much attention to price rather than bitcoin fundamentals. In bull and bear markets, it’s often key to ignore the noise created by trading markets and dial back into your personal bitcoin strategy.

6 Month High

Bitcoin hit a six month high in February. After the second week of the month, bitcoin surged toward highs near $25,000.

When macro data showed inflation still running hot, bitcoin and other risk assets popped on the news. The rally didn’t last but bitcoin did settle back into a familiar trading range around $23,000.

March Is Here

In the US, many expect the Fed to raise its benchmark interest rate another 0.25 percentage point. As March kicks off, markets look to break consecutive losing weeks and flip positive. Bond yields and mortgage rates continue to push higher though and the stock market has been mixed.

Expect more of the same in the month ahead. Bitcoin and other risk assets are trapped in “reactionary mode” for the time being. A short spike to the up or downside is possible on any positive or negative macro data but, still being a little over a year out from the next bitcoin halving, a large move in either direction is a tall order without another major catalyst or event.

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