Bitcoin is experiencing its deepest monthly decline in three years as investors flee risky assets. President Trump's decision to raise global import tariffs to 15% triggered a sell-off.
Since the beginning of February, the price of Bitcoin has fallen by almost 20%, making this month the worst since June 2022. Moreover, if the downward trend continues, it could lead to the fifth consecutive monthly decline in its price, which has not happened since 2018. Experts surveyed by The Block called the current Bitcoin price range of $60,000 to $63,000 a key psychological level and the main technical support for the price of the leading cryptocurrency in the near future.
As of February 24, Bitcoin (BTC) is trading at $63,200, down 2% in a day, after falling 4.5% the day before. Since the beginning of the month, the price has fallen by almost 20%. Since the beginning of the year, the decline has been more than 27%. The price of Ethereum (ETH) is around $1,820, down 38% since the beginning of the year and 25% since the beginning of February.
However, analysts suggest that the current price movement is due to a reduction in lending in trading positions and is not a full-scale capitulation by investors.
A break in the price of Bitcoin below $60,000 could pave the way for a decline to around $50,000 or even $47,000, noted Andri Fauzan Azima, head of research at Bitrue. He added that in this scenario, “we will finally see some long-term investors capitulate before the cycle bottom is reached.”
“Bitcoin's decline below $63,000 reflects deteriorating sentiment toward cryptocurrencies in general. In the short term, macroeconomic news, especially regarding tariffs and geopolitics, is reinforcing the trend away from risky assets,” said Min Chung, an expert at Presto Research.
Political uncertainty and market dynamics indicate that the next few days could determine “whether the price will hold at $60,000 or break through,” analysts at 10xresearch also noted in a note.
The main trigger for the price decline was macroeconomic factors, including US President Donald Trump's announcement of plans to raise import tariffs to 15%. Unrest in Mexico and negative US real estate market data were also cited as negative factors.
"Trump's decision has shaken risky assets as a whole. Despite the rhetoric about ‘digital gold,’ Bitcoin continues to trade as a risky asset. When macroeconomic panic intensifies, capital flows into traditional defensive assets.
But Bitcoin has not yet reached that level," Bloomberg quotes BTC Markets crypto analyst Rachel Lucas as saying.
Quiet accumulation
Negative investor sentiment prevails in the crypto market, which is also reflected in the record low fear and greed index of 8 points out of 100, indicating a tendency among market participants to sell cryptocurrencies. However, even in these conditions, experts are voicing positive opinions.
Against the backdrop of a general sell-off, Azim noted signs of “quiet accumulation” of Bitcoin. The expert added that staying above the $60,000 to $63,000 range would negatively affect traders betting on a decline in the price of Bitcoin and could be supported by a potential improvement in macroeconomic conditions and the emergence of demand.
Technical analyst Tony Sycamore of IG Australia pointed out that Bitcoin is approaching its 200-week moving average at $58,503, adding that holding above this level could stabilize the market.
However, the situation is exacerbated by capital outflows from institutional products. US exchange-traded funds (ETFs) based on Bitcoin recorded their fifth consecutive week of capital outflows: one of the longest continuous series since such funds were launched in 2024. During this time, BTC funds saw a total outflow of nearly $3.8 billion, while ETH funds saw an outflow of $1.4 billion.
“I would closely monitor ETF inflows and investor sentiment to see signs of a deterioration in the situation,” Adzima added.
On the other hand, not all institutional capital is leaving cryptocurrencies. There are those who continue to actively accumulate crypto assets. For example, the largest corporate holders of Bitcoin and Ethereum, Michael Saylor's Strategy and Tom Lee's Bitmine, announced additional cryptocurrency purchases on February 23.
Bitmine reported the purchase of 51,162 ETH, or more than $93 million at the current exchange rate, bringing the company's total balance to 4.42 million ETH (about $8 billion). Strategy added 592 BTC, or more than $37 million at the current exchange rate, to its balance sheet, bringing the total balance to $45.3 billion.
Bitmine and Strategy's purchases come amid billions of dollars in unrealized investment losses, i.e., the potential loss that could be incurred if the assets were sold at current prices. For the former, this figure was about $8 billion, and for the latter, more than $9.2 billion.
“In the midst of this ‘mini crypto winter,’ we remain focused on methodically executing our capital management strategy and steadily acquiring ETH,” said Bitmine CEO Tom Lee.