Bitcoin Price Analysis: A Rocky Start to 2025
As we embarked on the year 2025, Bitcoin’s price movement exhibited a lackluster trajectory, primarily moving sideways throughout January. Unfortunately, February began on a negative note, with Bitcoin plummeting by approximately $92,000 on the very first day. This sudden drop served as a precursor to the challenges Bitcoin would face as the month progressed.
Currently, Bitcoin’s value has fallen below the $80,000 threshold, marking one of its poorest February performances in recent memory. Numerous experts have shared their insights into this downturn, with analysts from the cryptocurrency exchange, Coinbase, joining the discussion on Bitcoin’s February performance.
Understanding Bitcoin’s Weekly Decline: An In-Depth Analysis
Advertisement Banner
In their latest market report, Coinbase analysts David Han and David Duong emphasized the uncertain landscape of the crypto and Bitcoin markets. This shift in market dynamics follows the significant $1.4 billion Bybit breach and a general decline in the macroeconomic environment.
Coinbase analysts attribute part of the crypto and U.S. stock market downturn to recent trade tariff news and a dip in the Consumer Sentiment Index. Although the equities market rebounded due to a surge in investor optimism after the U.S. House of Representatives passed the annual budget, Bitcoin did not exhibit the same resilience. Over the past week, Bitcoin has struggled to recover key psychological levels above $95,000, currently trading just above the $80,000 mark, which represents an over 12% decline from its previous value.
Han and Duong suggest that Bitcoin’s inability to recover from its early-week slump stems from a lack of positive immediate catalysts within the crypto space. Furthermore, they pointed out the absence of technical support within the $80,000 to $95,000 range.
Investor Sentiment and Market Movements
The prevailing weak investor sentiment is underscored by significant outflows from U.S.-based spot Bitcoin exchange-traded funds, which saw withdrawals exceeding $2.9 billion in the past week. “Simultaneously, lending markets have mirrored the risk-off sentiment, with decreasing leverage and declining funding rates across the board,” the analysts noted.
According to the report, nearly $2 billion in perpetual futures were liquidated earlier in the week, resulting in a notable decrease in market leverage. At the same time, the CME basis for both Bitcoin and Ethereum has dropped to 5%, the lowest level observed since March 2023.
Current Bitcoin Price Overview
At the time of writing, Bitcoin is valued at approximately $85,200, reflecting a slight 0.3% decline over the past 24 hours. The prevailing market conditions and fluctuating sentiment continue to play a significant role in determining Bitcoin’s price trajectory in the coming weeks.
“`
