Bitcoin experienced a significant decline in February 2025, with its price dropping more than 5% to its lowest level since November 2024. This downturn was part of a broader trend that saw Bitcoin’s value plummet by over 25% during the month, closing near $84,000.

Several factors contributed to this slump. Economic policies, particularly President Donald Trump’s announcement of new tariffs on imports from Mexico, Canada, and China, sent shockwaves through global markets. These tariffs were seen as a potential precursor to a trade war, leading to a sell-off of riskier assets like cryptocurrencies.

Regulatory tensions also played a role, with Elon Musk’s new role in the Department of Government Efficiency (D.O.G.E.) sparking controversy and market instability. Musk’s clashes with U.S. regulators added to investor uncertainty, further undermining confidence in risk assets like Bitcoin.

Additionally, security concerns in the crypto space, such as the $1.5 billion hack of the Bybit exchange, exacerbated market fears and contributed to Bitcoin’s downward trajectory.

Despite these challenges, Bitcoin has shown resilience in the past. However, the current economic and regulatory landscape suggests that investors will need to closely monitor these dynamics to navigate the unpredictable crypto market.