Bitcoin heads for worst month since June 2022

Bitcoin is on track for its worst monthly drop since June 2022, falling over 19% in February and declining as much as 2.64% to US$62,858 during Asian trading hours.

The cryptocurrency has experienced five consecutive monthly drops, the longest streak since 2018, amid broader market risk-off sentiment.

The recent selloff follows a drop that began in October and coincides with global market reactions to geopolitical developments, including President Donald Trump’s announcement of a 15% global tariff rise.

Analysts note Bitcoin’s proximity to its 200-week moving average of US$58,503, with a fall below the US$58,000 to US$60,000 support zone potentially leading to further drops.

The market continues to view Bitcoin as a risk asset, despite its narrative as “digital gold,” with macroeconomic fears influencing investor behavior.

🔗 Source: Bloomberg

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Implications, context, and why it matters.

Leverage unwind drove the February selloff

The selloff came from a fast unwind of leverage (borrowed exposure used to amplify returns) rather than one single liquidation event 1.
Bitcoin futures open interest slid from about $61 billion a week earlier to around $49 billion, down more than 20% in notional exposure over a few sessions 1.
The pullback lined up with one of crypto’s fastest one-day drops, with Bitcoin logging a -6.05 move on February 5 (a statistical measure of an unusually extreme swing) 1.
Spot Bitcoin exchange-traded product flows swung during the volatility, with outflows from some legacy Bitcoin trusts plus muted demand in newer ETFs 2.

Bitcoin drop adds pressure for corporate treasuries and miners

The decline creates risk for nearly 200 public companies that hold Bitcoin since they must book mark-to-market losses (accounting adjustments that use current market prices) in financial statements 3.
Prominent investor Michael Burry says this could trigger a “death spiral” where falling prices push companies to sell, which adds more downside pressure 3.
VanEck says tighter financing has squeezed some miners, especially firms pursuing AI and high-performance computing strategies (using specialized computing infrastructure to run intensive workloads). That pressure could lead to Bitcoin sales to support balance sheets and capex (capital expenditures) 1.
Burry says Bitcoin at $50,000 would bankrupt miners 3.