Bitcoin recorded its largest monthly loss since June 2022, as the excitement around cryptocurrencies faded following Donald Trump’s victory in the U.S.
The price of Bitcoin dropped by 17.5% in February, the biggest monthly drop since June 2022, and its 11th worst month in the past decade, as negative sentiment gripped financial markets, foreign media report.
The world’s largest cryptocurrency ended February at a value of around $84,252, hitting a three-month low of about $78,273 during trading on Friday.
As a result, Bitcoin is now more than 20% below its record level of $109,071 set in mid-January.
Bitcoin weakened amid growing instability in financial markets, blamed on fears of a global trade war after Trump pledged to impose new tariffs on imports from Canada, Mexico, and China.
Cryptocurrencies had risen after Trump’s election victory, driven by speculation that the White House would adopt a pro-crypto stance and might even create a Bitcoin strategic reserve.
However, that optimism faded as traders awaited a clear pro-crypto regulatory framework from the Trump administration.
Sentiment was further damaged by a cyberattack on the Bybit exchange, in which $1.5 billion worth of digital assets were stolen in February.
