Bearish Turn: Cryptocurrencies Closed February Flat on Fed Fears

It is important to remember that in the month of January, Bitcoin achieved gains of almost 40%, its best monthly performance in 2013. While, ethereumthe second most important cryptocurrency in the market had achieved a rise of 32.44%. But in February, the two leaders managed to remain practically stable.

The January reading on the Consumer Price Index (CPI), the favorite indicator of the Federal Reserve (Fed), was the straw that broke the camel’s back. The headline figure rose to 5.4% from 5.3% the previous month and core inflation rose to 4.7% from 4.6% the previous month. That prompted predictions that the Fed will raise the rate by 50 basis points in March.

For his part, Craig Erlam, Oanda’s senior market analyst at Bolsamanía, pointed out that bitcoin continues to trade in the same range in which it has been in recent weeks. “We continue to see strong resistance in cryptocurrencies, but perhaps some profit taking after what has been a remarkable start to the year. There remains considerable resistance around $24,500-$25,500, a break of which could be a very bullish sign.”, he points out.

The cryptocurrencies that rose the most in February

1. Tron (TRX): +7.8%

2. Polygon (MATIC): +2.8%

3. Shiba Inu (SHIB): +0.4%

The cryptocurrencies that fell the most in February

– Avalanche (AVAX): -17.8%

– Solana (SUN): -15.9%

– Cardano (ADA): -10.9%

– Dogecoin (DOGE): -10.2%

As for Bitcoin, the leading cryptocurrency fell 2.3% in the month (it is worth remembering that it started the month around US$23,000) and this Tuesday it ends below US$23,500. Ethereum fell 1.8% in the month.

A color fact is the strong rise of the crypto meme “Floki” around 88%. Floki Inu (FLOKI) is a dog-themed meme coin that bills itself as a “movement”. It is a cryptocurrency that was born thanks to the fans and members of the Shiba Inu (SHIB) community. The coin is named after Elon Musk’s Shiba Inu.