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Bitcoin and Ether have seen modest gains this February, despite a brief dip in the middle of the month. Bitcoin has gained 0.2% so far this month, while Ether has seen a rise of 1.7%. This follows a strong January for both cryptocurrencies, with Bitcoin posting a 38% rise and Ether gaining 31%. Although regulatory concerns spooked investors earlier in the month, the market has recovered from the sell-off that ensued. Despite concerns about regulatory crackdowns, there are positive signs for the industry, with Hong Kong planning to legalize retail crypto trading, and the backing of China.

Regulatory Concerns

Earlier in February, regulatory concerns led to a sell-off in cryptocurrencies, with Bitcoin and Ether falling by 6% and 8.5% respectively. The concerns included regulatory action against Kraken and Paxos by the Securities and Exchange Commission, and an order from the New York State Department of Financial Services to stop minting the Binance USD stablecoin. However, the market has since recovered, and there has been little long-term effect on the market as traders have been able to move their activity elsewhere.

Impact of Macro Events

While macro events had a significant impact on cryptocurrencies earlier in 2022, Jeff Dorman, chief investment officer at Arca, believes that they have had less of an impact recently. He noted that January was a “great” month for most asset classes, including crypto, and that the S&P 500 and Nasdaq Composite had their best Januaries in four years and 22 years, respectively. Although both are set to post declines in February, Dorman noted that digital assets haven’t sold off as much as the equity and rates markets.

Fed Watch

James Lavish, managing partner at the Bitcoin Opportunity Fund, believes that Bitcoin is the “tip of the spear” for risk assets and that it typically moves first when buying or selling risk assets. Investors are currently on Fed watch, and Lavish expects that Bitcoin will react strongly to any Fed pivot.


Overall, Bitcoin and Ether have seen modest gains in February, despite concerns about regulatory crackdowns. Positive developments in Hong Kong and the backing of China are positive signs for the industry. While macro events have had less of an impact on cryptocurrencies recently, the market is still impacted by the Federal Reserve’s decisions.

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