Bitcoin began 2025 with lackluster performance in January, primarily trading sideways for the duration of the month. Its disappointing start to February, highlighted by a drop of approximately $92,000 on the first day, hinted at further declines later in the month.
The price of Bitcoin has since fallen below $80,000, marking one of its worst February performances in recent years. While various experts have shared insights and analyses regarding this market downturn, analysts from crypto exchange Coinbase are among the latest to comment on Bitcoin’s February record.
Bitcoin’s Weekly Decline: What is Behind the Drop?
In their recent market report, Coinbase analysts David Han and David Duong indicated that both the crypto and Bitcoin markets are in a state of uncertainty. This shift in market conditions follows the $1.4 billion hack at Bybit and a deteriorating macroeconomic environment.
According to the Coinbase analysts, recent trade tariff updates and a decline in the Consumer Sentiment Index have negatively affected the crypto market along with the US stock market early in the week. However, the equities market rebounded thanks to improved investor sentiment, following the approval of the year’s budget by the US House of Representatives during the week.
Conversely, Bitcoin has not exhibited the same level of resilience over the past week, failing to breach critical psychological levels above $95,000. Currently, the leading cryptocurrency is trading slightly above the $80,000 threshold, representing a more than 12% drop in just a week.
Han and Duong suggest that Bitcoin’s struggle to recover from earlier declines is due to a lack of positive short-term catalysts in the crypto space. Furthermore, they emphasized the absence of technical support within the $80,000 to $95,000 range.
Source: SoSoValue
The current weak investor sentiment is underscored by significant outflows from US-based spot Bitcoin exchange-traded funds, which have seen over $2.9 billion withdrawn in the past week. “At the same time, lending markets have mirrored this risk-averse sentiment, with a decline in leverage and reduced funding rates across the board,” the analysts noted.
The report stated that nearly $2 billion in perpetual futures were liquidated at the beginning of the week, leading to a substantial reduction in market leverage. In addition, the CME basis for both Bitcoin and Ethereum has fallen to 5%, the lowest level since March 2023.
Bitcoin Price Overview
As of now, Bitcoin is valued at around $85,200, reflecting a 0.3% decline over the past 24 hours.
The BTC price forms a doji candlestick on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
