The Bitcoin price has had a rocky start to 2025, with a lackluster performance in January followed by a significant drop in February. The premier cryptocurrency started the year moving mostly sideways, but things took a turn for the worse as it dropped around $92,000 on the first day of February. Since then, Bitcoin has slipped below $80,000, marking one of its worst February performances in recent years.
Analysts at crypto exchange Coinbase have weighed in on the latest Bitcoin price struggles, attributing the downturn to a combination of factors. According to Coinbase analysts David Han and David Duong, the crypto and Bitcoin markets are currently in an uncertain state. This shift in market conditions can be linked to the $1.4 billion Bybit hack and a decline in the macroeconomic environment.
The analysts also pointed to external factors such as the latest trade tariff news and a decrease in the Consumer Sentiment Index, which have impacted both the crypto and United States stock markets. While the equities market bounced back after the US House of Representatives approved the year’s budget, Bitcoin failed to show the same level of resilience.
Han and Duong believe that the absence of positive near-term catalysts for the crypto space has contributed to Bitcoin’s struggles. They also highlighted the lack of technical support within the $80,000 – $95,000 region, further exacerbating the situation. Investor sentiment appears to be weak, as evidenced by heavy outflows from US-based spot Bitcoin exchange-traded funds, with over $2.9 billion withdrawn in the past week.
Additionally, lending markets have echoed this risk-off sentiment, with leverage diminishing and funding rates declining across the board. Nearly $2 billion in perpetual futures were liquidated at the start of the week, reducing leverage in the market significantly. The CME basis for both Bitcoin and Ethereum has also dropped to 5%, the lowest since March 2023.
As of the latest update, Bitcoin is valued at around $85,200, reflecting a 0.3% decline in the past 24 hours. The future of Bitcoin’s price remains uncertain, with analysts closely monitoring market trends and looking for potential catalysts that could drive a recovery. Investors and traders are advised to exercise caution and stay informed about the latest developments in the cryptocurrency market.