The price of the world’s largest cryptocurrency, Bitcoin, is set to record its biggest monthly drop since 2022. Bitcoin slid to around $62,557, after a decline of nearly 3% at one point. It has since retraced some of the losses but February’s weakness remains. Bitcoin’s slide accelerated after October last year when President Donald Trump announced he would raise import tariffs by as much as 15%.
The announcement spurred a broad risk-off mood across global markets, pressuring Bitcoin and other risk assets. Trump’s decision to raise global tariffs by 15% created anxiety across risk assets, and Bitcoin followed the trend. Bitcoin is often called ‘digital gold,’ but in practice it remains a high-risk asset. When macroeconomic uncertainty rises, capital tends to move to traditional safe-haven assets, and Bitcoin has not yet reached that stage.
Bitcoin fell below $60,000 in early February, but resistance and rallies have continued at current levels, with bulls and bears locked in a tug-of-war. The outcome of this battle will determine whether it rebounds or heads lower. If this support breaks, a much deeper correction could unfold. Money flows are also negative.
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