Digital asset returns underperformed in FebruaryThis was reported in an analysis by the CEO of Pecunia256, Belen San José, on her LinkedIn profile.
Belén expressed:We end the month of February with neutral results, but with a very positive feeling regarding market sentiment. Despite not adding returns, we believe that the month of February has served to consolidate levels after many months of downward trend. The market has resisted the levels achieved in January and this means that it is increasingly difficult to break those supports”.
The CEO explained: “The returns in the main positions of the table can be defined as discrete, either in a positive or negative sense. This month, they have barely touched double digits”.
Saint Joseph remarked that: “The events that have marked the prices during February have been more technical than other months. With a very good start to the month after the great returns accumulated in January, We saw how the market slowed down due to the appearance and massive use of the ‘Ordinals’ protocol, in the Bitcoin network. This new protocol allows the recording of NFTs in each block of Bitcoin; until now the vast majority were programmed on the Ethereum network”, he also added that: “By increasing the weight of each block in the Bitcoin chain, the market stopped in its tracks and did not let the bullish trend that had already begun prevail. The positive part of this is that a new bearish trend was not imposed either. The market has since held up and even the block sizes on the Bitcoin network have gone down.”.
The CEO of Pecunia256 said: “Besides, in recent weeks we have perceived a significant change in analyst sentiment. The vast majority are inclined to think that the technical indicators mark an upward break in the price of bitcoins that would lead us to a continuous bull market like the one we lived in for three years, after the other crypto winter of 2018. We cannot confirm that this is going to be like that, but in Pecunia256 yes We think that the upward break is getting closer every day because the market is not correctly valuing the technology that crypto assets represent”.
Lastly, he highlighted:The market has been carried away in recent months by purely speculative events that have not damaged market fundamentals, in which we continue to believe”.
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