Why BTC Dropped in February & What’s Next

Bitcoin’s sudden dip in February has left traders confused, but analysts believe there’s more to it than just market fluctuations. After hitting an all-time high of $109K in January, Bitcoin seemed unstoppable. But February brought a sharp turn – prices have now dropped 1.11% in the past 24 hours, sitting at $96,148.

So, what’s really going on? Is this just a cooling-off phase before the next rally, or are deeper market forces at play? More importantly, could Bitcoin plunge further, or is a strong rebound on the horizon?

Let’s break it down.

Why Is Bitcoin Falling? Key Factors Behind the Drop

In a recent analysis, Altcoin Daily highlighted the main reasons for Bitcoin’s decline this month. The market is facing challenges from global politics and economic shifts.

• Trump’s tariff war with China and Canada led to a 9% BTC drop at the start of February.
• Bitcoin Reserve plans fueled a price jump in January, but with no updates, the market reacted negatively.
• New pro-crypto initiatives from the US Senate Banking Subcommittee failed to push Bitcoin higher.

Analysts note that Bitcoin’s current phase mirrors past trends—where BTC surges before major events, such as the 2024 U.S. elections, and then stabilizes.

Bitcoin’s Halving Cycle: Why Hasn’t It Pumped Yet?

Bitcoin’s post-halving rally hasn’t kicked in as expected. Historically, BTC surges after halvings, but this time, consolidation has lasted longer than usual.

One major reason is regulatory delays. Former US Representative Patrick McHenry pointed out that while crypto-friendly laws are in progress, real changes may take 18-20 months. This uncertainty is keeping many investors on the sidelines.

Bitcoin also tends to consolidate for 3-4 months after a halving before making its next big move – something that aligns with what we’re seeing now.

Politics and Bitcoin

Trump’s recent executive orders in support of crypto raised hopes for a Bitcoin boost, but the market hasn’t reacted strongly yet. Analysts say that the real impact will come when key regulatory positions are filled, and laws start shaping the industry. Until then, Bitcoin will likely remain range-bound.

Meme Coins Are Bleeding – What’s Next?

Meme coins have returned to the spotlight, especially after Kanye West hinted at launching his own. However, the reality is different – the meme coin market has lost over $44 billion in just three weeks.

Unlike the 2024 frenzy, 2025’s meme coin runs have been short-lived, with sudden pumps followed by sharp crashes. Trump Coin, for example, crashed 80% in just 15 days. Analysts believe meme coins will struggle to regain momentum this year.

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Can Bitcoin Recover? Key Levels to Watch

Despite February’s drop, Bitcoin still has the potential to rally in the coming months. If past halving cycles repeat, BTC could rise 40%, reaching $130K–$150K.

Other factors that could drive growth include:

• Strong ETF inflows, such as BlackRock’s $2.3 billion gain in 2024.
• A potential “golden cross” above $106K, which could signal another breakout.

For now, Bitcoin remains in a consolidation phase, with traders waiting to see whether it will rebound or face more downside.

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