Why BTC Dropped in February & What’s Next

The recent drop in bitcoin in February has left a lot of perplexity, but analysts think that it is more than market noise. After a formidable start in January to hit an Ath of $ 109,000, February gave the most shocking chills to the merchants. The price of Bitcoin has dropped by 1.11% in the last 24 hours, now at around $ 96,148. Will this go further in the sea where there is chances of rebound?

Let’s dive.

Why bitcoin collapsed in February?

In the ARECTENT VIDEAGE, Altcoin Daily Analyst highlighted the key factors behind this drop. The market is currently in a difficult state with Trump’s pricing war against China / Canada, causing a 9% drop in the BTC in early February. The market saw a massive leap in January with rumors of Bitcoin reserve plans, without any action, the market gave a cold reaction to the BTC. In addition, even the new Pro-Crypto initiatives of the US Senate banks subcommittee, failed to stimulate Bitcoin. According to the analyst, this consolidation phase reflects past trends, where Bitcoin joined before major events such as the 2024 elections but has cooled shortly after.

In addition, the post-launching cycle did not deliver the expected overvoltage. Historically, Bitcoin gathers after the halvings, but this time, it was different. The consolidation phases have dragged longer, leading to frustration among investors.

A key factor is the slow pace of regulatory changes. Former American representative Patrick Mchenry stressed that if Crypto friendly legislation is in motion, he could take 18 to 20 months to see substantial effects. This delay creates an uncertainty, which means that investors hold back. In addition, the Bitcoin price is historically consolidated for 3 to 4 months after the yield, which aligns the current trend.

Delayed policies and even disrupts the market

By the way, political movements, such as Trump’s executive decrees, supporting the crypto, initially triggered optimism but have not provided immediate price increases. Analysts point out that the real impact will occur when key regulatory positions are filled and that the legislation will start to shape the structure of the market. Until then, the price of Bitcoin should fluctuate in this consolidation range.

Adding to the tension, the same parts are back under the spotlight, with Kanye West referring to the launch of his own piece of memes. Although it may seem exciting, reality differs – the market for bleeding pieces, with more than 44 billion dollars destroyed in the past three weeks. Analysts are quick to emphasize that 2025 does not deal with memes parts with kindness. Unlike the 2024 even currency frenzy, this year has seen brief pumps followed by net accidents. Trump Coin, for example, dropped 80% in just 15 days, highlighting the volatility and the risks involved.

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Is there a hope?

To obtain a certain relief, the Bitcoin spell in February depends on key trends. If history is repeated after past hackchers, prices could jump 40%, pushing BTC at $ 130,000 to $ 150,000. On the same track, solid FNB entries, in particular the gain of 2.3 billion dollars of Blackrock in 2024, and a possible “golden cross” greater than $ 106,000 could also trigger growth.

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