The slump coincides with massive ETF outflows, with a staggering $516 million exiting Bitcoin funds on February 24 alone.
Bitcoin’s market freefall continues as ETF investors head for the exits in record numbers.
That’s six straight days of selling since February 18, totaling $1.14 billion in withdrawals over two weeks. Grayscale’s GBTC fund watched $60.08 million walk out the door. Investors aren’t exactly hodling with diamond hands right now.
Market sentiment has soured considerably. The Fear & Greed Index sits at a lukewarm 42, and 12% of Bitcoin addresses are now underwater. The widespread dollar-cost averaging strategy seems ineffective in this declining market.
Active addresses have dropped by 7% to 850,000, while RSI readings of 32 suggest oversold conditions. The MACD crossing below its signal line at 10:30 AM UTC isn’t helping either.
External factors are piling on the pressure. The escalating US-China trade tensions combined with Trump’s bombshell announcement of 25% tariffs on Canada and Mexico have investors on edge.
Add in uncertainty about interest rate cuts and you’ve got a recipe for market jitters. The 33% probability of a 25bp rate cut by May and 83% by June reflects market expectations about future Fed actions.
The crypto industry’s recent turbulence isn’t helping. Bybit’s $1.5 billion hack and Argentina’s President’s $LIBRA token scandal have folks spooked. This downturn comes despite Bitcoin’s 260-day fractal dimension previously indicating strong upside potential.
The lone bright spot? The SEC dropped its lawsuit against Coinbase, and MicroStrategy doubled down by acquiring 20,365 BTC for $2 billion.
Looking ahead, analysts warn of increased volatility with support levels at $86,400 and $87,000.
If Bitcoin breaks below these thresholds, things could get ugly. Resistance remains firm at $94,000 and the $98,000-$99,000 range.
February has historically been kind to Bitcoin. This year? Not so much.
