Brace for Green February, Kraken Tells Bitcoin Hodlers as BTC Tests USD 45K
Despite January being the historically worst performing month for bitcoin (BTC), the coin’s -19% return for the month this year “did not live up to expectations,” crypto exchange Kraken said. But if history is a guide, February should be better for BTC investors, with average returns of +17% for the month, they added.
At 07:43 UTC, BTC trades at USD 44,930 after briefly touching USD 45,300. It's up 5% in a day, 17% in a week and almost 8% in a month.
“January 2022 came in well below the average and median readings of +7% and +1%, respectively, for January monthly performance and marked the third worst-performing January on record when looking as far back as 2011,” Kraken said in its January 2022 Market Recap & Outlook report.
Looking at what February might bring for bitcoin, the report said that the month has historically been better than January. Bitcoin’s average return for the month of February is 17%, compared with an average of just 7% for January, Kraken’s report said.
February’s 17% average return makes it the fourth-best month historically for bitcoin, Kraken’s data further showed.
In addition to being a stronger month in terms of historical price performance, February has also exhibited less volatility on average over bitcoin’s history, the report noted. With average volatility of 83% per Kraken’s calculations, February is on average the fourth most volatile month, following January, April, and June.
January’s average volatility is 97%, with April and June coming in at 96% and 87%, respectively. The historically least volatile month is September with 61%, the report said.
Meanwhile, the report also pointed out that the number of bitcoin “whales,” defined as wallets holding more than BTC 1,000, fell from 2,153 wallets
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