The token fell as much as 2.64% to $62,858 and was trading near $63,000 as of 8 a.m. in London, News.Az reports, citing Bloomberg.
Bitcoin is now down more than 19% in February, putting it on track for its worst monthly performance since June 2022. That year, the collapse of the TerraUSD stablecoin triggered a chain reaction of failures across the crypto sector, including hedge fund Three Arrows Capital and lender BlockFi.
Bitcoin is also heading toward a fifth consecutive monthly decline — its longest losing streak since 2018, a turbulent period marked by the unwinding of the initial coin offering boom.
The current downturn, which extends a selloff that began in October, has unfolded amid broader risk-off sentiment in global markets. Investor appetite for risk assets weakened after President Donald Trump announced plans to raise global tariffs to 15%, unsettling equities and other higher-risk investments.
“President Trump’s decision to raise global tariffs to 15% rattled risk assets broadly, and Bitcoin moved with them,” said Rachael Lucas, a 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.”
Risk-off sentiment has weighed heavily on the crypto market since a significant selloff four months ago, with Bitcoin breaking through multiple key technical 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. He highlighted mounting pressure on miners, noting that Bitdeer Technologies has moved to liquidate all of its Bitcoin holdings.
“With the average all-in cost of mining Bitcoin around $80,000, many are operating below breakeven and are likely to remain net sellers for the foreseeable future,” Kala said.
US-listed spot Bitcoin exchange-traded funds recorded more than $200 million in outflows on Monday. At the same time, demand for downside protection in options markets remains roughly double that of bullish bets, according to data from Deribit. The next key support level stands at $60,000, a threshold Bitcoin nearly tested earlier this month.
Analysts are also watching the cryptocurrency’s 200-week moving average, currently around $58,503. Tony Sycamore, an analyst at IG Australia, wrote in a research note that whether Bitcoin can hold above this level — as it did in early February — may determine if prices stabilize.
A sustained move below the $58,000 to $60,000 support zone “would likely open the door to a deeper pullback,” Sycamore cautioned.
The broader crypto market is also under strain. According to CoinGecko, the total market capitalization of all cryptocurrencies declined by more than $120 billion between Monday and Tuesday. Ether, the second-largest digital asset, fell as much as 2.77% to $1,812 on Tuesday.
