Top crypto gainers and losers for February 2021

February has been a spectacular month for crypto, following in the footsteps of January. The crypto market has seen a great deal of growth, and it is safe to say that the bull run, beginning back in November 2020, is still alive and kicking, meaning that most traders will have enjoyed a crypto passive income of some sort this month. Let’s take a look at the statistics for the market as a whole and then explore a couple of the top crypto gainers and losers.

Taking a look at this month’s total market cap, we can see that the number rose from just under $1 trillion on February 1st ($972,993,846,107) to a peak of $1.7 trillion ($1,763,857,230,719). This represents a staggering 81 percent increase in value, which is especially impressive when you consider that the market cap only reached $1 trillion for the first time at the beginning of January. The most obvious reason for this increase is that Elon Musk, CEO of Tesla and for a brief time the wealthiest person in the world, announced that Tesla had bought $1.5 billion in Bitcoin. The market took this news as a significant sign of real-world adoption, and it skyrocketed the price of Bitcoin, along with many altcoins.

The market cap then sharply fell to around $1.5 trillion ($1,511,016,616,346) on the 23rd. Drops like this, uncorrelated to any specific press, is common behaviour for the crypto market, as it has always been volatile due to it being a newer asset class, as well as due to the sheer number of retail investors in the space. This is a market correction, which happens when the market re-establishes the prices of its assets in closer accordance with their true value, triggered by an overinflation of price (or arguably when a value trails too far off from its just price). Admittedly, we collectively have no idea what the “just price” of Bitcoin should be, as there has only been 12 years of “price discovery”. So it might also just be some traders judging that it was a good time to take their profits.

Moving onto the top crypto gainers of this month, we first have BTC. As usual, Bitcoin is firmly in charge of the crypto market, with a comfortable dominance of 61%. As mentioned earlier, Bitcoin has been the center of attention due to Tesla’s purchase. This caused BTC to explode in price, moving from $33,400 on February 1st to $58,100 on February 21st; a 74% price change. Throughout this month, BTC has been smashing its all-time-high records. Most traders will have made some crypto passive income from this insane increase. However, from February 21st, BTC began to drop, and on the 23rd, it hit $45,900, although one day later, it bounced back to $50,500.

ADA has seen a good month as it almost reached its previous all-time high of $1.33 (set in January 2018). On February 20th, it hit $1.19. If it continues to climb upwards, then March could see a new all-time-high being set for it. On February 1st, ADA was $0.338, meaning that at this month’s highest point, it saw a 72% increase. This could have been triggered by its rival, Ethereum, and its worryingly high transaction fees.

Looking at the losers for this month, we have LINK. At first glance, it may seem strange to call LINK a loser, as it just reached its all-time high of $36.83, but a closer look shows that it has been far more unstable than other assets. It has had sharper lows this month than others, making it much riskier than its peers. This volatility may have scared traders away.

LTC has performed somewhat poorly this month compared to other cryptos. Unlike the other cryptocurrencies listed, LTC failed to better its all-time high of $375.29 (set in December 2017). It never really came close. Despite it performing somewhat well during the middle of the month, from February 20th, it has seen a steep and consistent fall, with a disappointing recovery on the 24th. As a direct rival to Bitcoin, LTC often struggles when Bitcoin receives positive media attention.

Here is a table showing the 24 hour, and 7 day activity for the four assets discussed, to help visualise the market movements.

Conclusion

Overall, February was a fantastic month for crypto. Bitcoin’s continued rise brought up the prices of most altcoins, meaning the vast majority of traders investing in the top crypto gainers saw some crypto passive income, even those invested in poorer performing coins and tokens. Even with the steep drop around the 20th, the immediate future of the markets looks promising.