Bitcoin Down 8% in February as Daily Transfers Drop 76% and ETF Outflows Reach $364M
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.
- The significant drop in daily transfer volume could indicate a loss of confidence among investors and traders, potentially leading to a self-reinforcing price decline.
- Will the injection of new capital into the market be enough to reverse the downward trend, or will it become mired in a cycle of sell-the-rumors-and-buy-the-fear behavior?