Based on market data, Bitcoin (BTC) price has dropped by 8% this month and may record a monthly negative return for the first time since February 2020. Despite usual monthly returns of around 14%, reaching a new price ceiling seems unlikely given the current conditions. Bitcoin has been fluctuating between $92,000 and $100,000 since crossing the $92,000 level on November 19, 2024. In 2025, Bitcoin has only grown by 1.97%. However, the realized market value of Bitcoin has increased by $160 billion, indicating new capital influx despite current challenges. On the other hand, the decline in Bitcoin network activity is significant. Daily transaction volume has dropped by 76% and the number of active wallets by 74%. Long-term holders have not been selling, leading to the Coin Days Destroyed (CDD) metric hitting multi-year lows. In early February, Bitcoin witnessed a sharp 11.3% drop from $102,000 to $91,100 but managed to close above $95,000 every day of the month. However, the $95,000 support level has been tested three times in the past week and weakened with each test. If this level is breached, Bitcoin may drop below $90,000. With decreasing inflows from Bitcoin exchange-traded funds (ETFs) and a $364 million outflow on February 20, the likelihood of a BTC price correction has increased. Overall, Bitcoin is in a complex situation requiring careful attention from investors. Visit the digital currencies’ real-time price page to monitor token and cryptocurrency prices live.
