Bitcoin price drops sharply in February

The leading digital asset enters a bear market as optimism wavers.

Bitcoin suffers largest monthly loss since June 2022

Bitcoin dropped 17.5% in February, marking its biggest loss since June 2022, leading it into a bear market. The cryptocurrency ended the month priced at approximately $84,252 after hitting a low of $78,273. Factors contributing to the decline include rising concerns about global trade tensions, as well as a significant cyber-attack that resulted in the theft of $1.5 billion worth of assets from the Bybit exchange. The weakened sentiment followed initial excitement about a pro-crypto stance from the newly elected president, Donald Trump, who later reiterated plans for a Crypto Strategic Reserve.

The sharp decline in Bitcoin's value reflects a broader unease in financial markets, prompting investors to retreat from riskier assets. This volatility has been propelled by geopolitical tensions and regulatory uncertainty. Experts suggest that without decisive support from Trump for the cryptocurrency sector, the negative momentum could persist. The hope generated by Trump's recent announcement about including certain cryptocurrencies in a strategic reserve might not be enough to counteract the ongoing bearish sentiment. As Susannah Streeter noted, "The bears have been prowling around the crypto market," suggesting a cautious outlook ahead.

Highlights

The coming weeks will show if Bitcoin can reclaim lost ground or if bearish forces will dominate.