Bitcoin continued its losing streak on Tuesday, driving the token to its sharpest monthly decline since a wave of corporate failures rocked the crypto industry in 2022.
The world’s largest cryptocurrency dropped as much as 2.64% to $62,858 during Asian trading hours and is now down over 19% in February, heading for its worst monthly performance since June 2022, showed a Bloomberg analysis. Today’s decline left Bitcoin trading roughly 50% below its early-October record high of $126,272.
Bitcoin is also heading towards the fifth consecutive monthly loss, marking its longest stretch of declines since 2018.
Meanwhile, other cryptos like Ethereum plunged below $1900, while XRP trades at $1.34, BNB at $598.73, Solana at $77.7, and Dogecoin at $0.092.
Why are Bitcoin prices and other crypto tokens falling?
The latest weakness in the cryptocurrency was largely driven by increased uncertainty around US trade policy after the US Supreme Court struck down a significant portion of tariffs imposed by President Donald Trump.
In response, Trump announced new universal tariffs of 15% under an alternative legal framework, although only a 10% levy came into effect from midnight on Tuesday.
The president now faces greater legal hurdles in implementing and raising tariffs, but he has shown little willingness to retreat from his trade agenda. He also warned that countries attempting to renegotiate recent trade agreements with Washington could face even higher duties.
According to Riya Sehgal, Research Analyst, Delta Exchange, broader market stability will likely hinge on easing macro headwinds and a rebound in capital flows, conditions that remain elusive in the current environment.
“Even though the Federal Reserve has stopped tightening its policy, interest rates are still high compared to inflation, sustaining the appeal of interest-bearing assets at the expense of non-yielding instruments such as cryptocurrencies,” Sehgal said.
Bitcoin prices near-term outlook
Avinash Shekhar, Co-Founder&CEO, Pi42, believes that the market is transitioning from momentum trading to valuation sensitivity.
“If Bitcoin stabilises above the $63,000 to $64,000 liquidity pocket, it would indicate that absorption is underway. Failure to hold that band, however, could accelerate downside toward deeper demand zones as systematic selling intensifies,” Shekhar said.
On the technical outlook, Sehgal of Delta Exchange, said that Bitcoin remains capped below the $66,000–$67,000 resistance band, with key support near $62,000.
“Bitcoin extended its retracement below the $66,000 threshold, briefly testing the $63,000 area, while Ethereum lagged near $1,850 as broader deleveraging swept through crypto derivatives markets,” she added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
About The Author
