Bitfinex recently published data revealing that February was a particularly challenging month for Bitcoin, which experienced a considerable decline of 17.39%. This downturn signifies the most severe February results since 2014, ranking as the second worst month on record. The recent week was marked by heightened volatility, with Bitcoin dropping 18.4% to a low of $78,617 before recovering. The principal factor driving this downturn was an unprecedented outflow from Bitcoin exchange-traded funds (ETFs), which saw more than $1.1 billion exit on February 25th alone.
However, a notable development occurred on March 2nd, when U.S. President Donald Trump announced plans for a U.S. cryptocurrency reserve, sparking a rapid reversal in Bitcoin’s price. Following this announcement, Bitcoin saw a remarkable rebound, surging over 20% from its previous low, with daily gains exceeding 12%. Nonetheless, selling pressure soon returned, bringing Bitcoin back to around $92,000. Going forward, the S&P 500 index performance and other macroeconomic factors are critical, as they may greatly impact Bitcoin’s prospects amid ongoing uncertainty.