Bitcoin, the world’s most valuable cryptocurrency, lost more than 17% in February. It was Bitcoin’s worst monthly performance since June 2022.
Investors have been moving away from risky assets in recent weeks due to uncertainty caused by the United States’ decision to change its tariff policy towards some of its most important trade partners. Experts believe that investors are increasingly wary of politics having too much impact on Bitcoin, despite the fact that the cryptocurrency was created to be an asset devoid of any political influence.
While unsurprising, the Bitcoin sell-off was much bigger than expected and at one point resulted in a dip below $80,000 for the first time since November.
After a rally to an all-time price of $109,241 in January, Bitcoin saw a steady decline in February and reached its low point of $78,659.27 early on Friday. It later rebounded to $86,517.22 before settling at around $84K on Saturday.
Bitcoin might see further decline down the line with the key support level being set around $70K per coin. It is at this point when dip buyers might step in, stopping the decline and causing another rally for the cryptocurrency.
Other major cryptocurrencies and meme coins had it even worse than Bitcoin in February. Ethereum dropped by 33.76% last month, Solana is down by 41%, while Dogecoin had a 38% slide.