Bitcoin has dropped 8% in February and is on track for its first negative monthly return since February 2020.
Bitcoin has dropped 8% in February and is on track for its first negative monthly return since February 2020. Currently priced at $93,948, the cryptocurrency has struggled to gain steady momentum after surpassing its previous all-time high of $74,000. Since breaking above $92,000 on Nov. 19, 2024, Bitcoin has spent 65 out of the last 97 days fluctuating between $92,000 and $100,000. Despite weak price action, Bitcoin’s realized market capitalization has increased by $160 billion in the past three months, signaling fresh capital inflows, according to Sina G, co-founder of 21st Capital.
While new capital has entered the market, network activity has significantly declined. Bitcoin researcher Axel Adler Jr. reported that daily transfer volume has dropped by 76%, with active wallets decreasing by 74% in the past week. However, long-term holders are holding onto their assets, as indicated by Coin Days Destroyed data hitting a multi-year low. This metric, which tracks older Bitcoin transactions, suggests that long-term investors are not selling despite market fluctuations.
Earlier this month, Bitcoin saw a sudden 11.3% drop from $102,000 to $91,100 within 48 hours. So far, it has managed to close a daily candle above $95,000 for the entirety of February, but this support level has been tested three times in the past week. Analysts warn that if Bitcoin falls below $95,000, it could break down further to $91,000 or lower, possibly revisiting the sub-$90,000 range.
Spot Bitcoin exchange-traded funds (ETFs) have also seen reduced investor interest, with $364 million in outflows recorded on Feb. 20. Additionally, Strategy's recent acquisition of 20,356 BTC did not trigger a short-term price recovery, furthering concerns about the current market outlook.
Bitcoin is up just 1.97% in 2025 so far, failing to make significant gains after reaching its new all-time high. With trading volume and active wallet activity declining, the market remains cautious. However, the $160 billion increase in realized capitalization suggests that new money continues to enter the market, even as prices remain under pressure.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
