| Key Points: – Bitcoin faces weakest monthly close since June 2022 after 19% February slide. – Macro risk-off, ETF redemptions, leveraged liquidations drive selloff and volatility. – Liquidity thins; intraday swings amplify, yet no single systemic failure evident. |
Bitcoin is heading toward its weakest monthly close since June 2022, sliding more than 19% in February, as reported by Bloomberg. The drawdown puts BTC-USD on track for its steepest monthly loss since the sector’s 2022 turmoil.
Market participants point to a mix of macro risk-off sentiment, ETF redemptions, and leverage-driven liquidations. The combination has thinned liquidity and amplified intraday swings without indicating a single systemic failure.
Key data: February drop, intraday low, 200-week moving average
In intraday trade on Feb. 24 during the Asian session, Bitcoin fell as much as 2.64% to a low of $62,858, according to AAStocks. That move kept the token on course for the weakest February since 2022.
Technicians are focused on the 200-week moving average near $58,503, according to FXLeaders. Whether that long-term trend gauge holds may influence how far the current correction extends.
Flows and on-chain context are also pivotal. VanEck’s mid-February ChainCheck flagged a sharp sentiment and leverage reset, roughly 27% month-over-month declines at that point, and rising miner stress.
Some institutional allocators view the slide as macro- and positioning-led rather than a breakdown in crypto market infrastructure. In that framing, the risk is that deleveraging overshoots before stabilizing.
“Much of the bad news is already priced in,” said Matt Hougan, CIO at Bitwise, who also cautioned that prior bear cycles have sometimes pushed prices lower before turning.
What to watch next for BTC-USD
Levels and signals: 200-week moving average, ETF flows, miner health
Technically, the 200-week moving average around the high-$50,000s is a primary long-term line in the sand. Sustained closes above it would signal resilience; a decisive breach would risk a deeper trend reset.
ETF creation and redemption flows are a near-term barometer. Stabilizing or reversing outflows could restore incremental demand, while persistent redemptions would remove a key source of bid support.
Miner health warrants monitoring through hash rate stability and selling behavior. Heightened stress can lead to increased coin sales to cover operating costs, which may pressure spot markets temporarily.
Context check: similarities and differences versus 2022 decline
Today’s decline echoes 2022 in headline magnitude, but the backdrop differs. Seeking Alpha has framed the current slide as the steepest monthly loss since the 2022 corporate-collapse period, while recent drivers appear more macro and flow-based than credit-driven.
Unlike the insolvency-driven cascades of 2022, the latest retracement aligns with risk aversion, ETF flow rotation, and leverage normalization. If macro stresses ease and positioning resets, conditions could stabilize without a credit cleanup.
Disclaimer:
The information provided on AiCryptoCore.com is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency investments involve risk and may result in financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
