As Bitcoin crested near the psychologically significant $1,000 mark on February 1, 2017, a quieter revolution was taking shape across the broader cryptocurrency market. Altcoins—those digital assets that were not Bitcoin—were beginning to show signs of life that would, within months, erupt into one of the most dramatic altcoin seasons in cryptocurrency history.
Bitcoin rallied 3.7% on the day, closing near $989 according to CoinMarketCap data, fueled by geopolitical tensions between the new Trump administration and European leaders over currency manipulation. But beneath the headline-grabbing Bitcoin narrative, a basket of alternative cryptocurrencies was posting gains that hinted at a fundamental shift in market dynamics.
TL;DR
- Bitcoin traded at $989 on February 1, 2017, up 9.5% over the prior week
- Altcoins showed significant weekly gains: Monero +12.3%, NEM +23.8%, Dash +10.4%
- Total cryptocurrency market cap stood at approximately $17.7 billion, with Bitcoin dominance above 85%
- Ethereum traded at $10.73, Litecoin at $4.07, XRP at $0.0065
- China’s capital controls and geopolitical uncertainty were driving broader crypto interest
The Numbers Behind the Altcoin Surge
CoinMarketCap’s historical snapshot from February 1, 2017, paints a vivid picture of a market on the cusp of transformation. Bitcoin commanded a market capitalization of $15.96 billion with 24-hour trading volume of $150.1 million—a healthy figure that reflected growing institutional and retail interest. But the real story lay in the altcoin rows below.
Ethereum, ranked second, held a market cap of $949.5 million at $10.73 per token with modest 24-hour volume of $12.85 million. XRP sat in third place at $241 million. Litecoin, often called the silver to Bitcoin’s gold, was valued at $202 million with a price of $4.07. Monero, the privacy-focused cryptocurrency, was gaining serious traction at $13.27 with an $184 million market cap, up 12.32% in just seven days.
Perhaps most notably, NEM (XEM) had surged 23.82% over the previous week to reach $0.0055 per token, while Dash gained 10.42% to trade at $16.03. These were not the triple-digit percentage moves that would characterize the later altcoin mania of mid-2017, but they represented a clear acceleration from the subdued trading patterns of late 2016.
China: The Elephant in the Crypto Room
No discussion of the early 2017 cryptocurrency market is complete without understanding the outsized role of China. Fortune magazine, in its February 1, 2017 issue, ran a feature titled “Bitcoin is Back” that explicitly credited Chinese demand as the primary driver of Bitcoin’s recovery. Chinese exchanges had claimed to process nine out of every ten global Bitcoin trades, making the country the undisputed center of cryptocurrency activity.
The yuan had fallen 6% against the US dollar over the preceding year, reaching its weakest point since 2008. Beijing’s tightening capital controls—designed to prevent money from leaving the country—ironically made Bitcoin more attractive as a vehicle for moving wealth beyond the reach of Chinese authorities. This dynamic created a powerful bid under not just Bitcoin, but the entire cryptocurrency market.
However, the Chinese government’s relationship with cryptocurrency was complicated. In early February 2017, the People’s Bank of China summoned executives from major Bitcoin exchanges for meetings that sent a brief shudder through the market. Bitcoin dropped approximately 4% on the news before recovering, a pattern that would repeat throughout the year as Chinese regulators alternated between tolerance and crackdown.
Ethereum Classic, Dash, and the Diversification Thesis
The altcoin market of early February 2017 was remarkably diverse for its size. Ethereum Classic (ETC), the original Ethereum chain that refused to implement the DAO hack bailout, traded at $1.35 with a $120 million market cap. Dash, which marketed itself as a privacy-enhanced payments network with instant transaction capabilities, held steady at $16.03.
Further down the rankings, projects like MaidSafeCoin (MAID), Steem, Iconomi (ICN), Factom (FCT), and Augur (REP) each commanded market caps between $30 million and $62 million. Tether (USDT), then a fledgling stablecoin with a mere $25 million market cap, was barely a blip on the radar—a far cry from the tens of billions it would represent in later years.
This diversity reflected a growing recognition among crypto enthusiasts and speculators that blockchain technology could support far more than digital gold. From prediction markets (Augur) to decentralized storage (MaidSafeCoin) to social media (Steem), the altcoin landscape of early 2017 was a laboratory of experimentation.
The Institutional Door Opens
February 1, 2017, also marked a significant institutional milestone. The Wall Street Blockchain Alliance announced its new Blockchain Assets Working Group, chaired by Chris Burniske of ARK Investment Management. ARK had been the first public fund manager to invest in Bitcoin, and Burniske’s new role was focused on analyzing blockchain assets as an emerging asset class—encompassing not just Bitcoin, but Ethereum, Zcash, and the broader altcoin universe.
Simultaneously, the Enterprise Ethereum Alliance was being formed with backing from JPMorgan, Microsoft, Intel, and CME Group, further legitimizing the idea that altcoins—and Ethereum in particular—deserved serious attention from the financial establishment.
India’s Regulatory Caution
Not all regulatory signals were bullish. On February 1, 2017, the Reserve Bank of India (RBI) issued a public notice stating that it had not given any license or authorization to any entity or company to operate with Bitcoin or other virtual currencies. The RBI’s caution—its second such statement—highlighted the regulatory uncertainty that hung over the altcoin market like a cloud, particularly in major population centers where cryptocurrency adoption was growing rapidly.
Why This Matters
Looking back from the vantage point of a mature cryptocurrency market, February 1, 2017, stands as a clear inflection point. The altcoin market was tiny—Ethereum at $10, Monero at $13, Litecoin at $4—but the trends that would define the legendary 2017 bull run were already visible. Institutional interest was awakening (WSBA, EEA), Chinese capital was flowing in, and the altcoin diversification thesis was gaining traction. Within six months, the total cryptocurrency market cap would explode from under $18 billion to over $100 billion, and altcoins would briefly capture more than 60% of the total market. For anyone watching closely on February 1, 2017, the signs were there—written in the weekly gain percentages of Monero, NEM, and Dash, and in the boardroom decisions of JPMorgan and Microsoft.
Disclaimer: This article is for informational and historical purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, and past performance is not indicative of future results. Always conduct your own research before making investment decisions.
NEM +23.8% in a week and nobody was paying attention because all eyes were on BTC hitting $1000. that was the signal for altseason
XRP at $0.0065 feels like a fever dream now. the entire altcoin market cap was under $2 billion back then.
ETH at $10.73 and LTC at $4.07. if you told someone then that ETH would hit $4K they would have institutionalized you
^ literally. i remember buying ETH at $12 thinking i was late. the china capital controls narrative was the real catalyst though
Bitcoin dominance at 85% and people still FUDded alts. the writing was on the wall once BTC stalled at $1000