Key Takeaways
- • Bitcoin fell as much as 2.9% to $62,701 on Tuesday, trading near $63,150 at 7 a.m. New York time, and is down more than 19% in February, on course for its worst monthly performance since June 2022.
- • Bitcoin is on track for a fifth straight monthly decline, its longest losing streak since 2018, extending a selloff that began in October.
- • Risk-off sentiment across global markets, triggered by President Donald Trump's plan to raise global tariffs to 15%, weighed on Bitcoin alongside equities and other higher-risk assets.
- • US-listed spot Bitcoin ETFs recorded more than $200 million in outflows on Monday, and downside options demand remains roughly twice that of bullish bets per Deribit data.
- • Total cryptocurrency market value fell by more than $120 billion between Monday and Tuesday per CoinGecko, with Ether down as much as 2.9% to $1,812.
Summary
Bitcoin extended its decline on Tuesday, putting the token on course for its steepest monthly drop since the crypto industry's wave of corporate collapses in 2022. The original cryptocurrency fell as much as 2.9% to $62,701 and was hovering around $63,150 at 7 a.m. in New York, according to the report. The token is down more than 19% in February and is also on track for a fifth consecutive monthly decline, its longest losing streak since 2018.
The slide extends a selloff that began in October and has broken through multiple key support levels. The decline coincided with broader risk-off sentiment across global markets after President Donald Trump announced plans to raise global tariffs to 15%, a move that unsettled investors and weighed on equities and other higher-risk assets. Rachael Lucas, crypto analyst at BTC Markets, said Bitcoin continues to trade as a risk asset despite the "digital gold" narrative, and that capital has not yet rotated toward traditional safe havens.
Pratik Kala, a portfolio manager at Australia-based hedge fund Apollo Crypto, said investors struggle to identify meaningful near-term catalysts. He pointed to strain on miners, including a decision by Bitdeer Technologies to liquidate all of its Bitcoin, and said the average all-in cost of mining Bitcoin is around $80,000, meaning many miners are operating below breakeven and are likely to remain net sellers.
US-listed spot Bitcoin ETFs saw more than $200 million in outflows on Monday, and demand for downside protection remains roughly twice that of bullish bets in options trading, according to Deribit. Tony Sycamore, an analyst at IG Australia, wrote that Bitcoin is approaching its 200-week moving average of $58,503, and that holding above that level, as it did in early February, could determine whether prices stabilize. He warned that a fall below the $58,000 to $60,000 support zone would likely open the door to a deeper pullback. The next support level cited is $60,000, a price Bitcoin nearly reached earlier this month.
The broader crypto market is also under pressure. Total market value across all cryptocurrencies fell by more than $120 billion between Monday and Tuesday, according to CoinGecko, and Ether fell as much as 2.9% to $1,812. Separately, the 2022 collapse continues to reverberate: on Monday, the administrator for Terraform Labs, the entity behind the TerraUSD stablecoin, sued Jane Street Group LLC. Administrator Todd Snyder alleged in the complaint that Jane Street used "non-public information to front-run trading that hastened the collapse of Terraform." A Jane Street spokesperson called the suit "desperate" and "a transparent attempt to extract money."
The slide extends a selloff that began in October and has broken through multiple key support levels. The decline coincided with broader risk-off sentiment across global markets after President Donald Trump announced plans to raise global tariffs to 15%, a move that unsettled investors and weighed on equities and other higher-risk assets. Rachael Lucas, crypto analyst at BTC Markets, said Bitcoin continues to trade as a risk asset despite the "digital gold" narrative, and that capital has not yet rotated toward traditional safe havens.
Pratik Kala, a portfolio manager at Australia-based hedge fund Apollo Crypto, said investors struggle to identify meaningful near-term catalysts. He pointed to strain on miners, including a decision by Bitdeer Technologies to liquidate all of its Bitcoin, and said the average all-in cost of mining Bitcoin is around $80,000, meaning many miners are operating below breakeven and are likely to remain net sellers.
US-listed spot Bitcoin ETFs saw more than $200 million in outflows on Monday, and demand for downside protection remains roughly twice that of bullish bets in options trading, according to Deribit. Tony Sycamore, an analyst at IG Australia, wrote that Bitcoin is approaching its 200-week moving average of $58,503, and that holding above that level, as it did in early February, could determine whether prices stabilize. He warned that a fall below the $58,000 to $60,000 support zone would likely open the door to a deeper pullback. The next support level cited is $60,000, a price Bitcoin nearly reached earlier this month.
The broader crypto market is also under pressure. Total market value across all cryptocurrencies fell by more than $120 billion between Monday and Tuesday, according to CoinGecko, and Ether fell as much as 2.9% to $1,812. Separately, the 2022 collapse continues to reverberate: on Monday, the administrator for Terraform Labs, the entity behind the TerraUSD stablecoin, sued Jane Street Group LLC. Administrator Todd Snyder alleged in the complaint that Jane Street used "non-public information to front-run trading that hastened the collapse of Terraform." A Jane Street spokesperson called the suit "desperate" and "a transparent attempt to extract money."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.