Bitcoin continued to retreat as this week progressed, deepening a slump that has put the crypto on track for its steepest monthly decline since mid-2022 when turmoil swept through the cryptocurrency sector. The world’s largest token by market value dropped 2.64% to $62,858 before hovering close to $63,000 by 8 a.m. in London.
The latest move leaves Bitcoin down 19% for February, marking its weakest month since June 2022. That earlier downturn followed the implosion of TerraUSD, which set off a chain reaction across the industry. Major players, including BlockFi and Three Arrows Capital, collapsed as liquidity dried up and investor confidence evaporated.
If February closes in negative territory, it will mark Bitcoin’s fifth straight month of declines, the longest such stretch since 2018. That year was defined by the fallout from the initial coin offering boom, when a wave of speculative projects unraveled and erased billions in market value.
The present downturn began in October and has coincided with a broader shift away from riskier investments. Market sentiment deteriorated after President Donald Trump announced plans to increase global tariffs to 15 percent, unsettling equity markets and other higher-risk assets.
Rachael Lucas, an analyst at BTC Markets, said Bitcoin’s reaction underscores its sensitivity to macroeconomic stress. “Even with its reputation as digital gold, the crypto continues to behave more like a speculative asset. When uncertainty rises, investors tend to shift funds into conventional safe havens rather than cryptocurrencies,” she said.
Selling pressure has weighed on the market for months, with Bitcoin breaking below several technical support levels. Pratik Kala, portfolio manager at Apollo Crypto, said traders are struggling to identify short-term drivers that could reverse sentiment. He also pointed to the mounting strain on mining companies. Bitdeer Technologies has begun selling off its Bitcoin reserves, a move that highlights financial stress within the sector.
According to Kala, the average total cost of mining a single Bitcoin stands near $80,000. With prices well below that level, many miners are operating at a loss and may continue offloading holdings to cover expenses.
U.S.-listed Bitcoin spot ETFs saw over $200 million in net outflows on Monday. In derivatives markets, traders are paying roughly twice as much for downside protection as for bullish positions, based on Deribit data.
Technical analysts are watching key price levels closely, with the next significant support sitting near $60,000, a threshold Bitcoin nearly touched earlier this month. Attention is also focused on the 200-week moving average, now near $58,503.
According to Tony Sycamore of IG Australia, holding above this line could help stabilize prices. A sustained break below the $58,000 to $60,000 range, he warned, may pave the way for a more pronounced decline.
Investors will be analyzing trading data on platforms like Coinbase Global Inc. (NASDAQ: COIN) to get an idea of how prices of Bitcoin and other cryptos are likely to change over the coming weeks.
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