Bitcoin registered the biggest monthly decline since June 2022 which triggered a bear market condition while cryptocurrency euphoria from Donald Trump’s election victory momentally faded only to be revived through president’s Sunday support.
February 2023 saw bitcoin prices drop 17.5% to establish itself as the worst month after June 2022 while maintaining its position as one of the eleven worst months during the last decade due to market-wide negative sentiment.
Bitcoin reached its lowest price point in three months when trading on Friday ended at about $78,273 and kept going to close February at $84,252 or its equivalent in British pounds at £67,010.
Bitcoin suffers from technical bear market status because its current value stands at more than 20% under the previous peak of $109,071 reached during mid-January.
Bitcoin faced decline in value following the surge of financial market volatility that emerged because of Trump’s decision to place trade tariffs on Canadian Mexican and Chinese imports this week.
Cryptocurrencies performed poorly after the Wall Street stock indices and the US dollar along with them experienced a decline throughout February.
After Trump won his presidential race the cryptocurrency market experienced explosive growth as traders believed his administration would introduce both crypto-friendly policy changes and implement bitcoin as a strategic financial reserve system.
Sunday marked a crucial day for cryptos when Trump announced the selection of particular cryptocurrency types for inclusion in future Crypto Strategic Reserves.
The cyber-attack against Bybit exchange caused major sentiment damage when hackers stole $1.5bn of digital assets through February.
According to Susannah Streeter who heads money and markets at Hargreaves Lansdown the crypto market faced ongoing negative outlook that resulted in ongoing market declines.
Crypto prices sank 20% when bears entered the crypto market and started their hunt.
The aggressive trade policies of Donald Trump alongside the Bybit exchange hack in Dubai serve as main factors sending investors toward safer assets. Currently there is no clear support from Trump for crypto sector development which indicates that market anxiety will persist.
Bitcoin has shown past capabilities of recovering from deep decreases in its value during individual months. The June 2022 market performance of Bitcoin showed its cruelest month when the price fell by 41% from $31,700 to $18,700 compared to July when it increased by 26%.
The announcement from President Trump regarding three selected cryptocurrencies for the new US strategic reserve led to a price surge across the crypto market during Sunday.
The announcement from Trump about his January executive order for digital assets led to an increase in XRP (Ripple) and SOL (Solana) and ADA (Cardano) prices because these currencies would join the new US strategic reserve. The Reserve would make Bitcoin and Ethereum its core assets according to Trump leading to a market boost that took Bitcoin to $94,000.
A growing trade war led by U.S. president Donald Trump created the latest crypto market downfall that occurred at the same time the U.S. stock market reached its peak.
The Crypto Fear & Greed index shows very edgy market conditions right now with its number 21 reading matching a point not seen since September according to Agne Linge who serves as head of growth at decentralized onchain bank WeFi.
The stock market generated its reaction to upcoming March 5 tariff implementation on Canada and Mexico because of expected economic impact. Several investors plan to move assets from volatile investments which do not shield them against emerging trade conflicts. The regional economic uncertainties force investors to seek stability yet bitcoin presents unsteadiness as a naturally volatile cryptocurrency at the present time.
