The post Coinbase Analysts Discuss: What’s Really Driving the Decline That Led to the Second-Worst February in Bitcoin History? appeared on BitcoinEthereumNews.com.

Bitcoin is set to close February with a significant 21% drop, making it the second-worst February in cryptocurrency history. The steepest February drop was in 2014, when Bitcoin lost 30% of its value following the collapse of once-dominant exchange Mt. Gox. Bitcoin’s recent decline, which is currently trading just above $80,000 after briefly dropping below $79,000 in the past 24 hours, is attributed to a lack of bullish catalysts, according to Coinbase analysts. “In our view, the pullback was driven by the absence of positive near-term catalysts for the area combined with the lack of technical support between $80,000 and $95,000,” Coinbase analysts David Han and David Duong wrote in a report. While Bitcoin struggled, global stock markets remained resilient thanks to continued strength in the AI sector. Nvidia’s fourth-quarter earnings report on Feb. 26 topped expectations, reinforcing investors’ confidence in AI-driven growth. Meanwhile, gold maintained its upward momentum, supported by central bank purchases. The Coinbase report also pointed to weakening macroeconomic sentiment in the U.S. Key indicators, including a 10% month-over-month decline in the University of Michigan Consumer Sentiment Index and a 7% drop in the Conference Board’s Consumer Confidence Index, added to concerns about an economic slowdown, weighing on risk assets including cryptocurrencies. Reflecting the cautious market sentiment, institutional investors pulled more than $2.9 billion from U.S. spot Bitcoin ETFs last week, analysts said, while the lending market also showed a risk-off trend as leverage was reduced and funding rates fell. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/coinbase-analysts-discuss-whats-really-driving-the-decline-that-led-to-the-second-worst-february-in-bitcoin-history/

---

Filed under: News - @ March 1, 2025 3:19 am