Bitcoin has moved into a prolonged downtrend, with February expected to mark the harshest month for the crypto market since the Terra/Luna collapse in mid-2022. The price has already fallen about 50% from a peak of roughly $126,000 reached in October last year, underscoring a broad risk-off environment for digital assets.
The pullback is also supported by macro factors beyond crypto fundamentals. Depreciation of risky assets due to tariff and geopolitical risks has weighed on markets, with ETF funds exiting and large holders selling into rallies. In Korea, Upbit’s crypto price discussion highlights a slide in Bitcoin, as a chart referenced in local coverage shows a movement from a psychological support level around 100 million won to about 93 million won, signaling further downside risk.
Global macro news compounds crypto weakness. The market has faced a tariff surprise from the U.S., with plans to raise global tariffs to 15%, prompting selling across high-risk assets, including Bitcoin. Even as Bitcoin spot ETFs contributed to earlier upside, they have withdrawn nearly $3 billion this year, reflecting waning investor loyalty among new entrants and existing holders alike. Large holders, or whales, have also participated in the downtrend, selling more than 43,000 Bitcoin last week.
In the mining sector, the strategy to embrace AI transition is increasingly pivotal. CoinMarketCap data shows Bitcoin hovering around $64,000, about half its late-2021 peak. The long-term decline is reshaping the sector, with miners’ fortunes diverging. Mara Holdings (MARA) has seen its stock drop around 40% over the past year as balance-sheet exposure to Bitcoin volatility weighs on performance, while peers such as TeraWulf and Cipher Mining have shifted toward AI data centers and higher computing workloads, expanding market opportunities.
Conversely, some miners have benefited from AI-driven demand. Australian outfit IREN has quadrupled its market capitalization in a year by directly purchasing GPUs and selling AI computing power, illustrating a broader realignment toward AI-centric infrastructure. Analysts caution that Bitcoin’s ability to sustain the 200-week moving average near $58,503 could determine the near-term trajectory; a break below this level may open a deeper corrective phase, according to IG Australia’s Tony Sycamore.
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