Bitcoin entered February with a sluggish start, leading many to anticipate marginal gains following the previous month’s performance. However, the premier cryptocurrency gradually gained traction, surpassing expectations and reaching unforeseen levels. Let’s delve into the underlying factors and their progressive impact on prices.
As momentum began to peak, reports surfaced indicating an imminent decline in BTC supply in the days ahead based on on-chain data. This was attributed to a reduction in the quantity of the asset held on exchanges, dwindling to 1.84 million amidst escalating demand. The notable increase in demand for the leading cryptocurrency comes as no surprise.
Institutions persist in their investments in the primary cryptocurrency, with Reddit being the latest entity to do so. The American-based social network disclosed in a Security and Exchange Commission (SEC) filing its allocation of some excess reserves into bitcoin and Ethereum. Additionally, the filing revealed the company’s intention to go public.
MicroStrategy, a long-standing investor, also joined the fray by expanding its BTC holdings by 3000 coins. While some criticized the move, alleging that the purchase occurred at the market’s zenith and anticipating a correction, others expressed confidence in the decision.