Bitcoin’s start to 2025 has been pretty underwhelming. January was mostly sideways, but February started with a bang—a bad one. The price plummeted, falling below $80,000 and marking one of its worst February performances in recent history.
Why the Bitcoin Dip?
Coinbase analysts David Han and David Duong point to a few key factors:
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Lack of Positive News: Basically, nothing exciting is happening to boost Bitcoin’s price. There’s a lack of positive catalysts to drive it upwards.
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Macroeconomic Woes: The global economy isn’t doing great. Trade tariff news and a low Consumer Sentiment Index hit both the stock and crypto markets. While stocks recovered, Bitcoin didn’t.
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Bybit Hack: The $1.4 billion hack of Bybit didn’t help investor confidence.
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Weak Technical Support: Bitcoin struggled to stay above the $80,000-$95,000 range, lacking the technical support to push it higher.
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Investor Sentiment: Investors are pulling out. US-based Bitcoin ETFs saw over $2.9 billion in withdrawals last week. The lending market also reflects this negative sentiment, with reduced leverage and lower funding rates. A huge amount of perpetual futures contracts were liquidated early in the week. The CME basis for Bitcoin and Ethereum is at its lowest point since March 2023.
Bitcoin’s Current State
At the time of writing, Bitcoin is trading around $85,200, down slightly over the last 24 hours. The overall picture is one of uncertainty and a lack of positive momentum.
