February could be the worst February for bitcoin since the 2022 cryptocrisis

Bitcoin is approaching its worst monthly performance since June 2022, when the crypto industry experienced a wave of corporate bankruptcies. Back then, the collapse of the TerraUSD stablecoin project triggered a chain reaction of bankruptcies affecting crypto hedge fund Three Arrows Capital and lender BlockFi, Bloomberg writes. On February 24, bitcoin fell 2.64% to $62,858. In February, the cryptocurrency has already lost 19%.

In addition, bitcoin is heading for its fifth consecutive month of declines, the longest streak of declines since 2018, a tough period for the crypto market due to the collapse of the initial token offering (ICO) boom, Bloomberg reports.

The whole crypto market is also under pressure now, the agency notes. The total capitalization of all digital assets decreased by more than $120 billion from February 23 to 24, according to data from CoinGecko. Ethereum, the second largest crypto asset, was down 2.77% to $1,812 on Tuesday, February 24.

The decline in the cryptocurrency market on February 24 was a continuation of the sell-off that began last October, Bloomberg writes. The situation is unfolding against the background of the general withdrawal of investors from risky assets in global markets, the agency explains. Among the factors of the current sell-off Bloomberg calls the statement of U.S. President Donald Trump on February 21 about his intention to raise global duties to 15% after the Supreme Court overturned other tariffs of the U.S. President. Uncertainty with the duty policy of the States has increased anxiety in the markets and triggered pressure on stocks and other risk assets, the agency points out.

"President Trump's decision to increase global duties to 15% shook up risk assets in general, and bitcoin moved with them," noted BTC Markets crypto analyst Rachel Lucas. According to her, despite the rhetoric about "digital gold" (that's what bitcoin is called by its supporters and some institutional investors - for its limited issuance and supposed role as a store of value), bitcoin still trades as a risky instrument. "When macroeconomic concerns increase, capital flows into traditional protective assets. Bitcoin is not one of them yet," she added.

On February 23, spot bitcoin-ETFs traded in the U.S. recorded an outflow of more than $200 million, Bloomberg writes. At the same time, the demand for protection against bitcoin price decline in options roughly doubled the volume of bullish bets, according to Deribit data also cited by the agency.

Bitcoin has lost 27% since the beginning of the year and 50% of its October record. Nevertheless, on February 10, Bernstein economists maintained their forecast of bitcoin price at $150 thousand by the end of 2026. And Tom Lee, a well-known crypto-optimist and chief investment officer of Fundstrat, said that bitcoin could be a more effective means of saving than gold.

At the same time Standard Chartered, one of the most active global banks in the field of digital assets, lowered on February 12 the forecast of the cost of bitcoin for the second time in less than a quarter from $150 thousand to $100 thousand, while in December last year the bank predicted for the cryptocurrency price at the level of $300 thousand. He also warned that before the stabilization of prices, the cost of bitcoin may fall to $50 thousand.

This article was AI-translated and verified by a human editor