{"id":376978,"date":"2025-03-01T06:13:42","date_gmt":"2025-03-01T00:43:42","guid":{"rendered":"https:\/\/dripp.zone\/news\/3-reasons-bitcoin-price-plunged-25-to-hit-120-day-lows-in-february-202-crypto-news\/"},"modified":"2025-03-01T06:17:28","modified_gmt":"2025-03-01T00:47:28","slug":"3-reasons-bitcoin-price-plunged-25-to-hit-120-day-lows-in-february-202-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/3-reasons-bitcoin-price-plunged-25-to-hit-120-day-lows-in-february-202-crypto-news\/","title":{"rendered":"3 Reasons Bitcoin Price Plunged 25% to hit 120-Day Lows in February 202 &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p><span style=\"font-weight: 400\">Bitcoin price plunged as low as $78,256 of Friday, closing February with more than 25% loses. On-chain data trends suggest retail traders\u2019 panic selling this was behind the latest BTC price downturn.<\/span><\/p>\n<h2><strong>Bitcoin (BTC) Plunges to Lowest Since November 2024<\/strong><\/h2>\n<p>Bitcoin (BTC) price extended its February losses further on Friday, weighed down by political and economic turbulence.<\/p>\n<p>The majority of the bearish momentum stemmed from developments within the Trump administration, shaking investor confidence in risk assets.<\/p>\n<p>In the last quarter of 2024, BTC price outperformed major financial assets as Trump\u2019s pro-crypto stance fueled bullish sentiment.<\/p>\n<p>His inauguration-day launch of a memecoin further amplified gains, driving Bitcoin price to new all-time highs in January.<\/p>\n<p>However, after posting double-digit growth in Q4 2024, BTC price has faced intense sell pressure in February, with multiple macroeconomic and geopolitical factors fueling the downturn.<\/p>\n<figure id=\"attachment_241691\" aria-describedby=\"caption-attachment-241691\" style=\"width: 3166px\" class=\"wp-caption aligncenter\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-241691\" src=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM.png\" alt=\"Bitcoin price action, Feb 2025 | TradingView\" width=\"3166\" height=\"1518\" srcset=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM.png 3166w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM-300x144.png 300w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM-1224x587.png 1224w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM-768x368.png 768w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM-1536x736.png 1536w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM-2048x982.png 2048w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.25.05-AM-150x72.png 150w\" sizes=\"auto, (max-width: 3166px) 100vw, 3166px\"\/><\/noscript><figcaption id=\"caption-attachment-241691\" class=\"wp-caption-text\">Bitcoin price action, Feb 2025 | TradingView<\/figcaption><\/figure>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/coingape.com\/price\/bitcoin\/\" target=\"_blank\" rel=\"noopener\">BTC price<\/a> dropped 8% on Friday, briefly hitting $78,256 on Binance\u2014its lowest level in over 120 days. Having opened February at $102,429, BTC price has now plunged 25%, as it closed the month just below the $84,000 mark, as depicted in the TradingView chart above<\/p>\n<h2>Why Did Bitcoin Price Plunge 25% in February 2025?<\/h2>\n<p>Beyond a \u201csell-the-news\u201d event following Trump\u2019s inauguration, several new bearish catalysts emerged throughout February, further weighing on Bitcoin price action.<\/p>\n<p><strong>1. DeepSeek\u2019s Emergence Unsettles AI Markets, Triggering Sell-Offs<\/strong><\/p>\n<p>The AI sector\u2019s turmoil has sent shockwaves across financial markets, contributing to BTC price volatility. DeepSeek, a major Chinese AI player, has challenged U.S.-based firms like OpenAI, raising fears of a prolonged AI arms race. This uncertainty escalated following NVIDIA\u2019s positive earnings report on February 27, which paradoxically triggered a rapid sell-off in tech stocks. The bearish sentiment rippled into crypto markets, playing a crucial role in BTC price sinking to fresh 120-day lows within 24 hours.<\/p>\n<p><strong>2. Elon Musk\u2019s D.O.G.E. Oversight Clashes With U.S. Regulators<\/strong><\/p>\n<p>Elon Musk\u2019s new role as head of the Department of Government Efficiency (D.O.G.E.) has stirred significant controversy, contributing to market instability. Tensions between Musk and key agencies such as USAID, the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/coingape.com\/sponsored\/elon-musk-could-push-dogecoin-to-the-us-treasury-this-altcoin-may-rise-with-the-hype\/\" target=\"_blank\" rel=\"noopener\">U.S. Treasury<\/a>, and the SEC have intensified, leading to investor uncertainty.<\/p>\n<p>Financial markets have overheated as regulatory battles escalate, further undermining confidence in risk assets. The evidently contributed to Bitcoin\u2019s 25% price dip in February 2025.<\/p>\n<p><strong>3. Trump\u2019s Tariffs on Canada and Mexico Trigger Panic Selling<\/strong><\/p>\n<p>Trump\u2019s surprise announcement of 25% tariffs on imports from Canada and Mexico sent shockwaves through financial markets, prompting investors to retreat from volatile assets. Following the hotter-than-expected February 13 CPI report, inflation fears surged, exacerbating risk-off sentiment. Investors, bracing for further inflationary pressures, have begun offloading BTC in favor of safer assets.<\/p>\n<p>Julien Bittel, Head of Macro Research at Global Macro Investor (GMI)\u00a0 also echoed this sentiment in a recent post on X.<\/p>\n<blockquote>\n<p>\u201cEverything happening in markets right now, especially in crypto, is a direct consequence of the tightening of financial conditions in Q4 last year.<\/p>\n<p>When financial conditions tighten, liquidity gets drained, and economic surprises start to slow.\u201d<\/p>\n<ul>\n<li>Julien Bittel, Head of Macro Research at Global Macro Investor (GMI), <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/BittelJulien\/status\/1895427153321251261\" target=\"_blank\">Feb 28, 2025<\/a><\/li>\n<\/ul>\n<\/blockquote>\n<p>While BTC\u2019s 25% decline in February aligns with tightening trends in global financial markets, on-chain data suggests that retail traders were the primary sellers during the latest downturn.<\/p>\n<p><a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/Santiment.net\" target=\"_blank\">Santiment<\/a>\u2019s Daily Active Addresses (DAA) metric, which tracks unique addresses engaging in transactions, confirms increased retail sell pressure. BTC recorded 515,000 active addresses on February 23, but following Trump\u2019s tariff announcement, this number surged dramatically.<\/p>\n<figure id=\"attachment_241689\" aria-describedby=\"caption-attachment-241689\" style=\"width: 2766px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-241689\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"Bitcoin Price vs. BTC Daily Active Addresses (DAA) | Source: Santiment\" width=\"2766\" height=\"1546\" data-lazy-srcset=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM.png 2766w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-300x168.png 300w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-1224x684.png 1224w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-768x429.png 768w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-1536x859.png 1536w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-2048x1145.png 2048w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-150x84.png 150w\" data-lazy-sizes=\"(max-width: 2766px) 100vw, 2766px\" data-lazy-src=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-241689\" src=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM.png\" alt=\"Bitcoin Price vs. BTC Daily Active Addresses (DAA) | Source: Santiment\" width=\"2766\" height=\"1546\" srcset=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM.png 2766w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-300x168.png 300w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-1224x684.png 1224w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-768x429.png 768w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-1536x859.png 1536w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-2048x1145.png 2048w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.29.28-AM-150x84.png 150w\" sizes=\"auto, (max-width: 2766px) 100vw, 2766px\"\/><\/noscript><figcaption id=\"caption-attachment-241689\" class=\"wp-caption-text\">Bitcoin Price vs. BTC Daily Active Addresses (DAA) | Source: Santiment<\/figcaption><\/figure>\n<p>For context, BTC\u2019s DAA has exceeded 880,000 daily transactions since February 25, reaching a new 2025 peak of 882,000 on February 27, before settling at 875,000 on Friday. Such heightened activity during a downtrend strongly suggests that retail traders are driving the sell-off, applying downward pressure on Bitcoin price.<\/p>\n<p>With BTC price consolidating near 120-day lows, investors are closely watching key support levels. If selling pressure persists, Bitcoin price could test the $75,000 level in the coming days. However, a potential rebound could emerge if macroeconomic conditions stabilize or institutional inflows resume.<\/p>\n<p>For now, retail-driven selling, geopolitical uncertainty, and inflation fears remain dominant themes shaping BTC price action in early 2025.<\/p>\n<h2 data-start=\"0\" data-end=\"90\">BTC Price Forecast: Bulls Risks Deeper Correction Below $80K as More Sell Signals Emerge<\/h2>\n<p data-start=\"92\" data-end=\"425\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/coingape.com\/price-predictions\/bitcoin-btc-price-prediction\/\" target=\"_blank\" rel=\"noopener\">Bitcoin price forecast<\/a> charts show BTC struggling near $84,344 after an extended downtrend, with sell signals intensifying. The Bollinger Bands have widened, indicating increased volatility, while Bitcoin trades below the midline at $93,607. A rejection from this level could confirm bearish continuation toward the lower band at $83,478.<\/p>\n<p data-start=\"427\" data-end=\"758\">The Top Bottom Indicator recently flashed a sell signal, mirroring the previous instance in January that led to a steep correction. If history repeats, Bitcoin could extend losses further. Volume Delta also reflects sustained negative momentum, with declining green bars and increasing red, suggesting persistent selling pressure.<\/p>\n<figure id=\"attachment_241690\" aria-describedby=\"caption-attachment-241690\" style=\"width: 3154px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-241690\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"BTC Price Forecast\" width=\"3154\" height=\"1512\" data-lazy-srcset=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM.png 3154w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-300x144.png 300w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-1224x587.png 1224w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-768x368.png 768w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-1536x736.png 1536w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-2048x982.png 2048w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-150x72.png 150w\" data-lazy-sizes=\"(max-width: 3154px) 100vw, 3154px\" data-lazy-src=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-241690\" src=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM.png\" alt=\"BTC Price Forecast\" width=\"3154\" height=\"1512\" srcset=\"https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM.png 3154w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-300x144.png 300w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-1224x587.png 1224w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-768x368.png 768w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-1536x736.png 1536w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-2048x982.png 2048w, https:\/\/coingape.com\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-01-at-1.26.52-AM-150x72.png 150w\" sizes=\"auto, (max-width: 3154px) 100vw, 3154px\"\/><\/noscript><figcaption id=\"caption-attachment-241690\" class=\"wp-caption-text\">BTC Price Forecast<\/figcaption><\/figure>\n<p data-start=\"760\" data-end=\"1056\">However, Bitcoin\u2019s price has yet to break decisively below the lower Bollinger Band, indicating potential for a relief bounce. The parabolic SAR remains above current levels, implying the rally has not reached an overbought stage, leaving room for a short-term recovery if buyers regain control.<\/p>\n<p data-start=\"1058\" data-end=\"1249\" data-is-last-node=\"\" data-is-only-node=\"\">If BTC holds above $83,500, bullish momentum could push it back toward $90,000. However, failure to reclaim $86,000 could accelerate the decline toward $80,000 as bearish sentiment dominates.<\/p>\n<section class=\"accordion-content mt-4\" id=\"faq\">\n<h2 class=\"mb-4 h3 fw7\">Frequently Asked Questions (FAQs)<\/h2>\n<\/section>\n<p>                                <!-- \n\n<div class=\"desktopPostEnd d-on\"><\/div>\n\n --><\/p>\n<div class=\"m-on mobiless\">\n<div id=\"social-section-new\">\n<p>\u2713 Share:<\/p>\n<p>                                  <a rel=\"nofollow\" target=\"_blank\" class=\"social-text_new wp_new\" href=\"https:\/\/api.whatsapp.com\/send?text=https:\/\/coingape.com\/markets\/bitcoin-price-analysis-btc-february-2025-trump-tarrifs-elon-musk\/\" target=\"_blank\" style=\"display: block\">  <i class=\"fa fa-whatsapp\"\/><\/a><\/p>\n<div>\n                                <a rel=\"nofollow\" target=\"_blank\" class=\"social-text_new tw_new_logo\" href=\"https:\/\/twitter.com\/intent\/tweet?text=https:\/\/coingape.com\/markets\/bitcoin-price-analysis-btc-february-2025-trump-tarrifs-elon-musk\/\" target=\"_blank\"><br \/>\n  <img loading=\"lazy\" decoding=\"async\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" class=\"mb-1\" alt=\"coingape\" width=\"30\" height=\"30\" data-lazy-src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2023\/08\/14164721\/x-logo.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2023\/08\/14164721\/x-logo.png\" class=\"mb-1\" alt=\"coingape\" width=\"30\" height=\"30\"\/><\/noscript><br \/>\n<\/a>\n                                <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"authorBoxnew newauthordesign\">\n<div class=\"author_Ndata d-flex align-items-center mb-2\">\n<div class=\"author_Image\">\n                                           <img loading=\"lazy\" alt=\"\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" data-lazy-srcset=\"https:\/\/secure.gravatar.com\/avatar\/ec36c745ac13558e2dd911177d9a7d40?s=400&#038;d=mm&#038;r=g 2x\" class=\"avatar avatar-200 photo\" height=\"200\" width=\"200\" decoding=\"async\" data-lazy-src=\"https:\/\/secure.gravatar.com\/avatar\/ec36c745ac13558e2dd911177d9a7d40?s=200&#038;d=mm&#038;r=g\"\/><noscript><img loading=\"lazy\" alt=\"\" src=\"https:\/\/secure.gravatar.com\/avatar\/ec36c745ac13558e2dd911177d9a7d40?s=200&#038;d=mm&#038;r=g\" srcset=\"https:\/\/secure.gravatar.com\/avatar\/ec36c745ac13558e2dd911177d9a7d40?s=400&#038;d=mm&#038;r=g 2x\" class=\"avatar avatar-200 photo\" height=\"200\" width=\"200\" decoding=\"async\"\/><\/noscript>                                  <\/div>\n<p>ibrahim  <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin price plunged as low as $78,256 of Friday, closing February with more than 25% loses. On-chain data trends suggest retail traders\u2019 panic selling this was behind the latest BTC price downturn. Bitcoin (BTC) Plunges to Lowest Since November 2024 Bitcoin (BTC) price extended its February losses further on Friday, weighed down by political and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":376698,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-376978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=376978"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376978\/revisions"}],"predecessor-version":[{"id":376981,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376978\/revisions\/376981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/376698"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=376978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=376978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=376978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}