The price of Bitcoin dropped to a critical stage on Friday, as the cryptocurrency came below the price of 65,000, this way enforcing a violent fifth month-downward-swing in a row. The cryptocurrency has fallen as low as possible at 67,788 by early trading, a decline of nearly 1% of the high it had hit, thus wiping out a short-term intra-week rise as risk aversion wanes.
Monthly Bloodbath Deepens
February has been one of the months of high turnover in the cryptocurrency industry. Bitcoin alone dropped by 14% month over month, a 50% reduction on October when it was nearing 108000. Geopolitical pressures, turbulent American economic signs and the likelihood of an increase in trade tariffs have been an aggregate cause of investor flight of speculative exposures.
Ether dropped 1.2%, to $2,038, which was heading to a 17% loss over a month, which was compounded by recent sales of over 10,000 ETH by Vitalik Buterin, worth about $20 million US dollars. XRP fell 2.3%, a 15% monthly loss, BNB has not changed much since but was still 20% off its previous high, Solana fell 17% and meme-based tokens like Dogecoin fell by 5.4%. In February, with the help of Coin Market Cap data, aggregate crypto market capitalization shrunk by approximately $800 billion dollars, as per the data provided.
Business Giants Are Not Acting As Saviors
Big business organizations have failed to offset the recession. Previously MicroStrategy Strategy Corp. showed no plan to continue its strategy of acquiring Bitcoin during the last quarter buying 5,000 BTC instead of 20,000 BTC in the previous quarter. This has decreased in speed, leading to alarm on possible liquidation of holdings as the debt increases.
MARA’s AI Pivot Shines
Bitcoin mining companies, particularly, MARA Holdings, saw an after-hours growth of 19% even after registering a loss of 1.7 billion in the 4th quarter and falling short of revenue expectations. Another new agreement has converted legacy mining sites into data centers with artificial intelligence load, and with help of Starwood Capital, this has provided a source of business where Nvidia GPUs will consume trillions of dollars of workload demand.
Cathie Wood of ARK Invest commented how the pivot of MaRA is a masterstroke, crypto being in distress and AI stands to gain it a significant benefit.
Dark Days Ahead or Rebound ?
The strife in the cryptocurrency ecosystem is an indication of danger. Bitcoin has resistance of 200 days moving average broken at 70,500 and the relative strength index (RSI) shows that it is over sold at 28. In turn, a further 10 to 15% decline to about $58,000 is realistic in case the trade tariffs worsen and the Federal Reserve rate-cut paths hit a dead end.
However, ETF inflows have hit a high of $2.5 billion year-to-year implying that investors are still interested. Vested activities in the past post-half cycle show that there could be a recovery of up to 300% in a year highlighting resilience. By observing what the Federal Reserve is prepared to do in terms of policy formation in March, it is possible to know whether a new boost of market energy will be created. Stakeholders should expect an increase in volatility in the meantime.