Bitcoin $94,201 experienced a significant loss in value in February, causing concern in the markets. The price dipped to as low as $78,256 during the week and fell below the $84,000 mark by the end of the month. This decline of approximately 25% increased the tendency among investors to avoid risk. Experts indicate that various factors, including political, economic, and technological influences, contributed to this downturn.
Impact of Political and Economic Factors
New policy changes under the Trump administration in the United States, along with proposed 25% import tariffs on Canada and Mexico, created uncertainty in the markets. These developments, combined with February’s inflation data, triggered a risk-averse attitude among investors.
The sharp decline in Bitcoin led to panic selling among individual investors in a high-cost market environment. Expectations of interest rate hikes in the U.S. and liquidity tightening increased overall market pressure, causing volatility in Bitcoin prices.
Technological and Regulatory Risks
The downturn in Bitcoin prices was also influenced by declines in technology stocks and regulatory pressures. Despite NVIDIA’s positive financial results, a general wave of selling in tech stocks adversely affected Bitcoin.
Additionally, uncertainties created by DeepSeek, a China-based company, led investors to act cautiously. Elon Musk’s involvement in a new project called D.O.G.E. and disagreements with U.S. regulatory bodies further intensified market pressures.
On-chain data indicate that individual investors engaged in heavy selling, pointing to a volatile market. According to Santiment’s data, a rapid increase in Bitcoin transactions followed Trump’s recent statements.
Technical analyses suggest that Bitcoin has a chance to recover if it remains above $83,500. However, if the price falls below this level, a deeper decline may occur. Investors are advised to closely monitor political and economic developments.