Bitcoin and Ether Close Out Best Monthly Gains Since 2020 and 2022

Crypto prices saw continued gains as February came to a close, with bitcoin and ether achieving their strongest monthly performances since 2020 and 2022, respectively. According to Coin Metrics, bitcoin rose 3% to $62,216.43 on the final day of February, with a peak above $64,000 earlier in the week.

While bitcoin experienced a brief pullback on Thursday, finishing the month with a 21% weekly gain, other cryptocurrencies like ether surged 3.5% to $3,400.80. Tokens associated with Ethereum rivals Avalanche and Solana saw significant jumps of 16% and 9%, respectively.

The month of February proved to be a significant milestone for both bitcoin and ether. Bitcoin closed the month with nearly a 45% gain, its best monthly performance since December 2020, while ether advanced over 47%, achieving its strongest month since July 2022.

A notable development in February was the success of bitcoin exchange-traded funds (ETFs) which saw significant inflows. The launch of these ETFs and the upcoming bitcoin halving in April are believed to have fueled the recent price appreciation, as highlighted by Sylvia Jablonski from Defiance ETFs.

Historically, February has been a favorable month for both bitcoin and ether. Bitcoin has ended 10 of the last 12 Februarys in the green, with an average return of 15.7%, while ether has closed higher in 7 of the last 8 Februarys, boasting an average gain of 17.2% since its inception.

Analysts suggest that the recent surge in crypto prices is driven by the dynamics of supply and demand in the market. Investment in bitcoin ETFs, the upcoming halving, and the long-term holding behavior of bitcoin investors are cited as key factors contributing to the current bullish momentum in the crypto space.