The first half of February and the whole January 2021 are setting the tone for the crypto market in the medium term. Both Ethereum and bitcoin have set fresh records week after week, thus propelling other altcoins upwards. However, on February 15, the stellar rally was interrupted by a sudden nosedive. As a result, crypto traders incurred massive losses of nearly $2 billion. Following an abrupt crash in the market, investors resumed speculations that a deep downward correction is just around the corner. This is likely to set the stage for a further downturn of prices of digital assets.

A dazzling rally of crypto assets in early February was triggered by a steady stream of positive news and arrival of large investors in the crypto market. All popular cryptocurrencies developed a confident bullish run. On the other hand, all of them exposed great dependence on bitcoin. The whole market was rattled by fresh records of the number one cryptocurrency. The only currency to remain immune to the overall rally is Litecoin. This digital asset has been on the rise irrelevant of trajectories of both Ethereum and bitcoin. Nevertheless, Litecoin has not been able to show resilience to the crash of the whole crypto market.

The downward correction has been brewing for a few recent weeks. So, the bitcoin price slumped by $4,000 within 24 hours that dealt a blow to the whole market. All popular cryptocurrencies tumbled in value, thus bringing retail investors losses of $2 billion. The catalyst for a nosedive was certainly bitcoin which conquered a new historic peak and immediately plunged 4%. This incident exposed the phenomenon that at this stage the crypto market is vulnerable to the king bitcoin.

Another crash is also looming. In the morning on February 16, bitcoin smashed through the psychological mark of $50,000 per token. Shortly after, it slipped to $49,998 and deeper to $48,800. At present, analysts say there are preconditions that the cryptocurrency with the largest market cap will not be able to extend its winning streak. Its price is likely to fall as low as $45,000 within the downward correction. In turn, this will drag down other cryptocurrencies that will dent investments and the overall market capitalization.

On the other hand, there are enough signs for a further bullish run. Over the recent 24 hours, bitcoin rebounded 4%. Its weekly gain is 55%. Such a roller coaster at this stage of the crypto market's development comes as no surprise. The reasons are the same: extreme volatility of digital assets and a looming correction of the crypto market. In any case, the market is in motion, heading for new milestone highs. Despite such gyrations, the market will hardly be trapped inside the bearish trend.