Bitcoin ends worst February since 2014 with a loss of 17% while Trump pumps ADA, XRP and SOL
Last Updated on 3 March 2025 by CryptoTips.eu
The selling wave that accelerated especially in the last week of February left Bitcoin showing a big loss in the second month of the year. With a drop of 17%, february 2025 means it is Bitcoin’s worst performance in that month since 2014. The last time Bitcoin ended February with a loss was 2020, when rumors started swirling that Covid could become a global epidemic. That was followed by the month of March which meant a loss of 25%.
So what does this all mean for the future?
It was also announced yesterday that Donald Trump is considering a ‘strategic crypto reserve’, which would include various ‘American’ crypto coins, such as Bitcoin, ADA, XRP and SOL. Those smaller altcoins responded very positively.
JUST IN: 🇺🇸 President Trump announces he's creating a Crypto Strategic Reserve, with no mention of Bitcoin 👎 pic.twitter.com/kKwXqCRUpM
— Bitcoin Magazine (@BitcoinMagazine) March 2, 2025
Politics
Just like stock markets, the price of Bitcoin (especially ever since the introduction of the Bitcoin ETFs) is now mainly driven by geopolitical circumstances. Even though it was designed as an anti-political investment good, this is where we find ourselves today.
The fall of stock markets and crypto prices last week was mainly due to the threat of the new United States government imposing import tariffs on other major economies.
With a threat of 25% tariffs on goods from Mexico and Canada to the United States, 10% on goods from China, a possible 25% on goods from the EU and sanctions on goods from Russia, the global economy threatens to slow down in the coming months. Investors are afraid of possible rising inflation that these import tariffs could bring about.
In addition, crypto investors expected a lot from the new Trump administration for their favorite investment good, but so far Trump has not delivered on too many promises (except for the pardon of Ross Ulbricht, founder of Silk Road, who was released from prison just days into Trump’s new term).
How should this go on?
The correlation between tech and crypto remains very high at the moment and so we will have to watch for the geopolitical events of the coming days and weeks that will also determine the direction of Bitcoin. If there is a peace plan for Ukraine, this could give a boost in the short term.