(Feb 24): Bitcoin extended its decline on Tuesday (Feb 24), putting the token on course for its steepest monthly drop since the industry suffered a slew of corporate collapses in 2022.
The original cryptocurrency fell as much as 2.64% to US$62,858 and was still hovering around US$63,000 at 8am in London. It’s now down more than 19% in February, set for its worst monthly performance since June 2022. That year, the implosion of TerraUSD, a stablecoin project, triggered a daisy chain of failures that included crypto hedge fund Three Arrows Capital and BlockFi, the lender.
Bitcoin is also on track for a fifth straight monthly decline, its longest losing streak since 2018 — a bruising period for crypto markets defined by the unravelling of an initial coin offering boom.
The slide — which extends a selloff that began in October — comes amid broader risk-off sentiment across global markets after US President Donald Trump announced plans to raise global tariffs to 15%, a move that unsettled investors and weighed on equities and other higher-risk assets.
“President Trump’s decision to raise global tariffs to 15% rattled risk assets broadly and Bitcoin moved with them,” said Rachael Lucas, crypto analyst at BTC Markets. “Despite the ‘digital gold’ narrative, Bitcoin continues to trade as a risk asset. When macro fear spikes, capital rotates toward traditional safe havens. Bitcoin is not there yet.”
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Since a massive selloff four months ago, risk-off sentiment has plagued the crypto market, and Bitcoin has broken through multiple key support levels.
“Bitcoin remains under pressure as investors struggle to identify meaningful near-term catalysts to drive prices higher,” said Pratik Kala, a portfolio manager at Australia-based hedge fund Apollo Crypto. Kala emphasised the strain on miners, pointing to a decision from Bitdeer Technologies to liquidate all of its Bitcoin.
“With the average all-in cost of mining Bitcoin around US$80,000, many are operating below breakeven and are likely to remain net sellers for the foreseeable future,” he said.
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US-listed spot Bitcoin ETFs saw more than US$200 million in outflows on Monday. Meanwhile, demand for downside insurance remains roughly twice that of bullish bets in options trading, according to data from Deribit. The next support level is US$60,000, a price that Bitcoin nearly reached earlier this month.
Bitcoin is edging ever closer to its 200-week moving average of US$58,503, Tony Sycamore, an analyst at IG Australia, wrote in a research note. Whether the token holds above that level — as it managed to in early February — could determine whether prices stabilise.
Conversely, a fall to below the US$58,000 to US$60,000 support zone “would likely open the door to a deeper pullback”, Sycamore wrote.
The crypto market as a whole is also under pressure. The total market value of all cryptocurrencies has fallen by more than US$120 billion between Monday and Tuesday, according to CoinGecko. Ether, the second-largest digital asset, fell as much as 2.77% to US$1,812 on Tuesday.
Uploaded by Arion Yeow
