Bitcoin Declines 17% in February, Marking Biggest Monthly Drop Since 2022

Bitcoin had a rough February, dropping nearly 17% and marking its worst monthly performance since June 2022. On Friday, the cryptocurrency briefly dipped below $80,000 before bouncing back to around $84,000. Even with the slight recovery, Bitcoin is still at its lowest level in nearly four months.

So, what’s behind this drop? Several factors have rattled the crypto market. Recently announced tariff hikes on imports from Canada, Mexico, and China have made investors uneasy, leading to sell-offs across multiple financial sectors, including cryptocurrencies. Many traders had been optimistic about a more crypto-friendly regulatory environment, but recent developments have caused some to rethink their positions.

Just a few weeks ago, Bitcoin was soaring, hitting an all-time high of $109,115 in mid-January. Investors were excited about potential policy shifts favoring the crypto industry. However, that excitement has cooled due to broader economic uncertainty and a massive $1.5 billion hack of a major crypto exchange, which further shook market confidence.

Analysts warn that if these economic concerns continue, Bitcoin could see even more losses, with $71,000 being a key level to watch. On the bright side, while Bitcoin struggled, some crypto-related stocks saw gains, suggesting that investors are exploring different ways to stay in the market.

With so much uncertainty, Bitcoin traders and investors will be closely watching economic policy updates and market trends in the coming months. Whether Bitcoin rebounds or continues its slide will largely depend on how these external factors play out.

Also Read: Bitcoin Drops 25% From Record High as Crypto Market Selloff Escalates in US