3 reasons The price of bitcoin decreased by 25 % to reach its lowest level for 120 days in February 202

Bitcoin price fell to $ 78256 from Friday, with February closed with more than 25 % losses. Data trends on the series indicate that the sale of retail panic was behind the latest BTC’s decline.

Bitcoin (BTC) drowns to the lowest level since November 2024

Bitcoin (BTC) extended its losses in February on Friday, when it was weighed by political and economic turmoil.

The majority of the landmark stems from the developments within the Trump administration, and the investor’s confidence in risk assets is shaken.

In the last quarter of 2024, BTC Price outperformed the main financial assets, as Trump’s supportive position fill in the upcoming feelings.

Its launch on the opening day of McQueen gains is more gains, which prompted the price of bitcoin to the highest level ever in January.

However, after spreading a double -number growth in the Q4 2024, the BTC price faced intense pressure in February, with multiple economic and geopolitical factors that feed the decline.

The BTC price decreased by 8 % on Friday, briefly reaching $ 78,256 on Binance – the lowest level in more than 120 days. After the opening of February at 102,429 dollars, BTC PRICE now decreased by 25 %, as the month closed slightly less than $ 84,000, as shown in the TradingView chart above

Why the Bitcoin price fell 25 % in February 2025?

In addition to the “Sell-The News” event after Trump’s inauguration, many new dumping stimuli appeared during February, which increases Bitcoin prices.

1. The appearance of Deepseek disturbs artificial intelligence markets, which leads to sales

Amnesty International Intelligence Sector disorders have sent shock waves across the financial markets, which contributed to the fluctuation of BTC prices. Dibsic, a Chinese player of artificial intelligence, challenged US -based companies such as Openai, which raised fears of the AI’s arms race for a long time. This uncertainty escalated after the NVIDIA positive profits report on February 27, which contradicts a rapid sale of technology shares. The descending feelings extended to the encryption markets, playing a decisive role in drowning BTC prices to its lowest levels within 120 days within 24 hours.

2. Elon Musk’s clash for Doug’s control with American organizers

The new role of Elon Musk as head of the Ministry of Government efficiency (DOGE) has sparked great controversy, which contributed to the instability of the market. Tensions between musk and major agencies such as the United States Agency for International Development, the United States Treasury and the SEC were intensified, which led to the uncertainty invested.

The financial market temperature has increased with the escalation of organizational battles, which increases confidence in the origins of risk. It clearly contributed to the decrease in the price of Bitcoin by 25 % in February 2025.

3. Trump’s tariff for Canada and Mexico are panic

Trump’s sudden announcement of a 25 % tariff for imports from Canada and Mexico shocked shock waves through financial markets, prompting investors to retract flying assets. In the aftermath of the February 13 report, inflation fears increased, which exacerbated risk morale. Investors, who are happy for more inflationary pressures, began to empty BTC in favor of the safest assets.

Julian Beetle, head of macro research at Global Macro Investor (GMI), also chanted this feeling in a modern post on X.

“Everything that happens in the market at the present time, especially in encryption, is a direct result of tightening the financial conditions in the fourth quarter of last year.

When financial conditions are tightened, liquidity is drained, and economic surprises begin to slow down. “

• Julian Beetle, Head of Macro Macro Macro Investor (GMI), February 28, 2025

While the 25 % BTC decreased in February is in line with tightening trends in the global financial markets, the data indicates that retail traders were the main sellers during the last decline.

SantimThe DaAa Activist Tenant, which tracks unique addresses, is confirmed in transactions, increasing retail pressure. BTC recorded 515,000 active titles on February 23, but after Trump’s introductory announcement, this number increased dramatically.

For the context, the DAA of BTC exceeded 880,000 daily transactions since February 25, when it reached the height of new 2025 of 882,000 on February 27, before settling at 875,000 on Friday. This increased activity during the declining direction strongly indicates that retail traders are leading the sale, while applying the declining pressure on the price of bitcoin.

With the standard of BTC price near 120 days, investors closely monitor the main support levels. If the pressure pressure continues, the bitcoin price can test 75,000 dollars in the coming days. However, a possible bounce can appear if the total economic conditions are stabilized or the resumption of institutional flows.

Currently, retail -based sale, geopolitical uncertainty, and inflation concerns remain dominant topics that form the BTC price movement in early 2025.

BTC price expectations: Bulls risk a deepest correction of less than 80 thousand dollars with more sales signs appear

Bitcoin price expectations are struggling near 84,344 dollars after trading below, with the intensification of sales signals. Bollinger domains expanded, indicating an increase in volatility, while Bitcoin is trading without the midfield at $ 93,607. Rejection from this level can confirm the continued fall towards the bottom of 83,478 dollars.

The upper slope index recently flashes a sale signal, reflecting the previous counterpart in January, which led to an acute correction. If the date is repeated, Bitcoin can extend losses. Delta also reflects the continuous passive momentum, with a decrease in green bars and red color, indicating the constant pressure pressure.

However, the price of Bitcoin has not yet broken the Bollinger Lower domain, indicating a possibility of relief.

In the short term in the BTC price, the BTC price exceeds $ 83,500, which the bullish momentum can pay about $ 90,000. However, the failure to restore $ 86,000 can lead to another decrease of about $ 80,000, especially since it is expected to intensify the emotional feelings with Trump’s tariff in Canada and Mexico on March 1.

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Ibrahim

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