Bitcoin’s Price Struggles as Coinbase Analysts Say There’s ‘Nothing Pushing It Up’

Bitcoin’s Slow Start to 2025: What’s Causing the Drop?

Bitcoin didn’t kick off 2025 with much excitement. In January, its price mostly moved sideways, showing little growth. Then, February got off to a rough start when Bitcoin dropped to around $92,000 on the very first day. Things only got worse as the month went on, with Bitcoin falling below $80,000—making it one of the worst February performances in recent years.

Why Is Bitcoin Dropping?

According to analysts David Han and David Duong from crypto exchange Coinbase, Bitcoin and the broader crypto market are in an uncertain phase. Several factors have contributed to this downturn:

1. Major Security Breach – The $1.4 billion hack of crypto exchange Bybit shook investor confidence. Big hacks like this often lead to panic selling, as seen before with Mt. Gox in 2014 and FTX in 2022.
2. Worsening Economic Conditions – The overall economy isn’t helping either. The latest news on trade tariffs and a drop in consumer confidence affected both the stock and crypto markets. In the past, similar economic downturns (like in 2018 and 2022) have led to Bitcoin sell-offs.
3. Stock Market Recovery vs. Bitcoin Struggles – While the stock market managed to bounce back after the US House of Representatives approved this year’s budget, Bitcoin didn’t show the same strength. Instead, it continued struggling to stay above key levels.

At the time of writing, Bitcoin is trading just above $80,000, down more than 12% in the past week. Analysts believe this drop is mainly due to two reasons:

• No Positive Triggers – There haven’t been any big news events or developments to push Bitcoin’s price up, unlike in late 2023 when ETF approvals caused a major rally.
• Weak Technical Support – Bitcoin hasn’t found strong buying interest between $80,000 and $95,000, making it easier for the price to keep falling.

Historically, Bitcoin has bounced back from similar situations before. For example, in July 2021, Bitcoin dropped below $30,000 before skyrocketing past $60,000 just a few months later. Whether this is another temporary dip or the start of a longer downtrend remains to be seen.

The current weak investor sentiment is spotlighted by the heavy outflows suffered by the US-based spot Bitcoin exchange-traded funds, with over $2.9 billion withdrawn in the past week. “Concurrently, lending markets have echoed the risk-off sentiment as leverage diminished and funding rates declined across the board,” the analyst added.

According to the report, nearly $2 billion in perpetual futures were liquidated at the start of the week, significantly decreasing the leverage in the market. Meanwhile, the CME basis for both Bitcoin and Ethereum has dropped to 5%, the lowest since March 2023.