The crypto market is looking like it’s about to have a fork in the road moment in February. Let’s take a look around crypto and the broader markets to find out what to possibly expect from this very important month. Covered: What The Broader Markets Are Saying What The Broader Markets Are Doing Upcoming Earnings […] The post Crypto Market February – What To Expect From The Upcoming Month appeared first on CryptosRus.

Crypto Market February – What To Expect From The Upcoming Month

The crypto market is looking like it’s about to have a fork in the road moment in February. Let’s take a look around crypto and the broader markets to find out what to possibly expect from this very important month.

Covered:

  • What The Broader Markets Are Saying
  • What The Broader Markets Are Doing
  • Upcoming Earnings Releases And Crypto
  • Fear And Greed Index
  • Total Global Crypto Market Cap

What The Broader Markets Are Saying

The broader markets, it can be argued, have taken crypto down with them. The Crypto market was doing quite well in the fall — in particular after the the arrival of an American Bitcoin Futures ETF — but has since fallen along with the broader markets. This, despite the fact that there are countless bullish indicators hitting the newswire on a daily basis.

Despite the fact the broader markets have been dumping consistently since November, some analysts fear it’s not over. In particular, the lack of clarity on when the interest rates will rise has put risk assets in the corner for now.

Not to mention, the beginning of February isn’t looking great, according to some. With a number of significant earnings releases (Amazon, Meta, Alphabet), the market could see a bunch of “selling the news” activity. Moreover, January employment data is coming out Friday and the numbers might not be what the market expects or is hoping for.

But, as you’ve probably ascertained by now, that’s all speculation. So instead of listening to what the markets say, let’s watch what they do.

What The Markets Are Doing

Interestingly, there isn’t a consensus that we’ve seen a broader market bottom. Finding a bottom is vital to get investors back into “small cap” tech stocks. This is important to cryptocurrency prices too because of the correlation.

“I think it’s first seller exhaustion, where stocks stop going down on bad news because there’s no one left to sell them. And I’m just not sure we’re there yet,” a financial analyst told Business Insider on the 24th of January. 

However, a Reuters piece just two days later, shows that there might not be anyone left to sell their small caps. The article outlines how the P/E ratio of the Russell 2000 index (which tracks small caps) has fallen more so than the same ratio for the S&P (which tracks the 500 biggest companies).

This has trigged several ‘buy’ recommendations for small caps from the likes Bank Of America — which sent out a note to its larger investors ncouraging small cap buys.

“…valuations are getting a lot cheaper. Earnings are holding up. I can’t see it getting a lot worse from where we are today,” a strategist at Jefferies told Reuters.

Upcoming Earnings Releases And Crypto

As I mentioned earlier, the upcoming earnings releases aren’t considered bullish indicators. With them might come some volatility. Though, a negative swing from some of those earnings releases might not necessarily effect the crypto market negatively.

At least two of the two companies reporting the first week of February have had significant crypto news recently. Meta, of course, is all in — the name change should tell you everything you need to know — on the metaverse. Not to mention, Alphabet, the parent company of Google, earnings release comes shortly after it was revealed the massive tech company invested in play-to-earn gaming.

As we’ve seen in the past, earnings releases can often reveal information we hadn’t been privy to before. That’s not to say anyone should expect big crypto news from these earnings, but it’s worth keeping an eye on.

Fear And Greed Index

The Fear & Greed Index is flashing a 29 right now. That might seem bad. But it’s the first time since January 3rd that it’s not flashing “extreme fear” meaning under 25. At this, point I think we’ll take straight up “fear.”

But in all seriousness, the Fear and Greed Index trending up is a great sign for February. It’s showing sentiment is improving. And with some certainty about rates until March, it could lead to some retail buying over the course of this month.

The Total Global Crypto Market Cap

Here’s some hopium for you, care of the crypto market cap.

At the beginning of February, the total crypto market cap stood at a lean, mean $999,000,000 billion USD. By February 20th, 2021 the market cap grew to 1.7 trillion USD. To put it in perspective, that’s around where the total crypto market cap stands today. That number was a record then, but a new normal now.

 

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