Bitcoin $85,243 experienced a significant loss in value in February, causing concern in the markets. The price dipped to as low as $78,256 during the week and fell below the $84,000 mark by the end of the month. This decline of approximately 25% increased the tendency among investors to avoid risk. Experts indicate that various factors, including political, economic, and technological influences, contributed to this downturn.
Impact of Political and Economic Factors
New policy changes under the Trump administration in the United States, along with proposed 25% import tariffs on Canada and Mexico, created uncertainty in the markets. These developments, combined with February’s inflation data, triggered a risk-averse attitude among investors.
The sharp decline in Bitcoin led to panic selling among individual investors in a high-cost market environment. Expectations of interest rate hikes in the U.S. and liquidity tightening increased overall market pressure, causing volatility in Bitcoin prices. creator solana token
Technological and Regulatory Risks…