Bitcoin Investors Face Heavy Losses as Cryptocurrency Sees Worst Month Since 2022
Bitcoin (BTC) is on track for its steepest monthly decline in three years, dropping 22% in February amid growing concerns over inflation, reduced expectations for interest rate cuts, and a declining appetite for riskier assets. The market downturn has been further exacerbated by President Donald Trump’s newly imposed tariffs on key U.S. trading partners.
This marks the largest monthly decline since June 2022, when Bitcoin plunged by more than a third. The cryptocurrency has also suffered its worst weekly performance since November 2022, shedding nearly 18% in just the past seven days.
The decline has left investors who entered the market this year facing significant unrealized losses. The average purchase price of Bitcoin since the start of January stands at approximately $97,880. With BTC dipping below $80,000 earlier on Friday, this means the typical investor is now down around 18%.
However, such early-year drawdowns are not unprecedented. Historically, Bitcoin has often fallen below investors’ cost basis before rebounding later in the year. Market participants will be closely watching to see whether this trend repeats in 2025.
On-chain data suggests that selling pressure has intensified alongside Bitcoin’s price drop. Over the past three days, realized losses have surged, with approximately $1 billion in losses recorded daily. This marks the highest level of daily realized losses since August 2024, when the unwinding of yen carry trades pushed Bitcoin down to $49,000.
Beyond Bitcoin, the broader cryptocurrency market has also been hit hard. The total market capitalization has shrunk by an astonishing $1.1 trillion, bringing the total crypto market value down to $2.59 trillion, according to TradingView’s Total market cap metric.
Investors are now watching key support levels and macroeconomic factors that could influence Bitcoin’s next move. Whether the digital asset rebounds from these losses or continues its downward trajectory will likely depend on broader economic trends and regulatory developments.
