Bitcoin has recorded its steepest monthly decline in nearly three years, as concerns over a potential global trade war and regulatory uncertainty weigh heavily on investor sentiment.
The world’s largest cryptocurrency fell by 17.5% in February, marking its biggest monthly drop since June 2022 and its 11th worst month in the past decade. By the end of the month, Bitcoin was trading at approximately $84,252 (£67,010), having briefly dipped to a three-month low of $78,273 during Friday’s session.
Bitcoin’s decline places it in a technical bear market, having lost over 20% from its record high of $109,071 set in mid-January. The downturn comes as financial markets experience heightened volatility, largely attributed to escalating trade tensions following U.S. President Donald Trump’s recent tariff announcements.
The digital asset had surged in the wake of Trump’s re-election in November, amid speculation that his administration would adopt a more favorable stance toward cryptocurrencies. Optimism also grew around the possibility of a U.S. Bitcoin strategic reserve. However, the market’s initial enthusiasm has waned, with traders now awaiting clearer regulatory policies from the White House.
Investor sentiment was further rattled by a cyberattack on the Bybit exchange, in which $1.5 billion worth of digital assets were stolen in February. The breach raised fresh concerns about security vulnerabilities within the cryptocurrency sector, exacerbating the ongoing sell-off.
“The bears have been prowling around the crypto market, with crypto dropping 20% from its recent peak,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
She added, “Donald Trump’s aggressive trade approach has sparked concerns with investors hurtling away from riskier assets, and the huge hack of the Bybit exchange in Dubai has also rattled sentiment. Without any firm moves from Trump to show his support for the crypto sector, nervousness looks set to continue.”
Despite the downturn, historical trends suggest that Bitcoin has rebounded from sharp losses in the past. In June 2022, it experienced its worst month on record, plummeting by 41% from $31,700 to $18,700, only to surge by 26% the following month.
Market analysts remain divided on Bitcoin’s near-term trajectory, with some predicting continued volatility amid macroeconomic uncertainties, while others argue that long-term adoption and institutional interest could help stabilize the market in the months ahead.
