Cryptocurrency slips into technical bear market as optimism after Donald Trump’s election win fades

Bitcoin has recorded its largest monthly loss since June 2022, pushing it into a bear market as the euphoria over cryptocurrencies after Donald Trump’s election win faded.

The price of bitcoin fell by 17.5% in February, the biggest monthly drop since June 2022, and its eleventh worst month in the last decade, as risk-off sentiment gripped financial markets.

The world’s largest crypto asset ended February at about $84,252 (£67,010), having hit a three-month low of about $78,273 during trading on Friday.

Bitcoin has now dropped more than 20% below the record high of $109,071 set in mid-January, which puts it into a technical bear market.

  • AlDente@sh.itjust.worksEnglish
    0·
    2 days ago

    Bitcoin is climbing again today because Trump reaffirmed his intention to create a US cryptocurrency reserve. If state currencies have value because they are backed by the military, wouldn’t this give the same source of value to these currencies? I don’t think the US isn’t going to be happy with outside entities messing with the value of their assets.

      • AlDente@sh.itjust.worksEnglish
        0·
        2 days ago

        Sure, in regards to Trump, you can criticize that all you want, but it doesn’t detract from cryptocurrencies becoming more legitimate per your own criteria.

        • queermunist she/her@lemmy.ml
          0·
          2 days ago

          Not exactly?

          The US uses its military to enforce the US dollar status as the global reserve currency. Libya tried to sell oil outside the US dollar market and look what happened to them.

          Unless Trump starts using the military to enforce Bitcoin value it still won’t have the same status as a currency.

          • AlDente@sh.itjust.worksEnglish
            0·
            2 days ago

            You make some interesting parallels. While Bitcoin is not mined from the Earth like oil, it is similarly mined all-around the world and not just in US jurisdictions. If another country tried manipulating Bitcoin to crash or pump-and-dump after the US becomes a major stakeholder it would be interesting to see how the US responds.

            Again, I’m not speaking in favor or against Trump, just exploring the facts.

            • queermunist she/her@lemmy.ml
              0·
              2 days ago

              Yes, but even if the US started militarily enforcing bitcoin mining, is the US trying to control the value of Bitcoin, or is it trying to control the value of Bitcoin in USD? Is the US treating bitcoin like a commodity that it needs to control (oil, gas) or like a currency?

              • AlDente@sh.itjust.worksEnglish
                0·
                2 days ago

                Those are both great questions. Of course, I can’t predict how all that will shake out. However, to bring it back to my original point, I think either hypothetical will increase the legitimatecy of Bitcoin and other cryptocurrencies.