Bitcoin Faces Worst Month Since 2022 Collapse as ‘Crypto Winter’ Fears Grip Markets, The cryptocurrency market is witnessing its most significant downturn in years, with Bitcoin (BTC) on track to record its worst monthly performance since the infamous industry collapse of June 2022. After peaking at an all-time high near $126,000 in October 2025, the flagship digital asset has entered a sharp correction, dropping over 19% in February alone.
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A Relentless Sell-Off: From $126k to $62k
The decline on Tuesday saw Bitcoin slip as much as 2.64%, trading near the $62,858 mark during Asian hours. This marks the fifth consecutive monthly decline—the longest losing streak for the cryptocurrency since the 2018 bear market.
Analysts are pointing to several “macro hammers” that have shattered investor confidence:
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Tariff Uncertainty: New global tariff announcements from the U.S. administration have triggered a “risk-off” sentiment, causing investors to flee speculative assets in favor of traditional safe havens.
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The “AI Bubble” Correlation: Previously thought to be a hedge, Bitcoin is now moving in lockstep with tech stocks. As AI-related equities face a correction, they are dragging crypto down with them.
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Fed Regime Shift: The nomination of Kevin Warsh as Federal Reserve Chairman has signaled a potential hawkish shift in monetary policy, unsettling the “easy money” narrative that fueled the 2025 rally.
The “Flash Crash” and Liquidations
The month has been defined by extreme volatility, including a “Black Sunday” event in early February where thin weekend liquidity triggered a cascade of forced liquidations.
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$18 Billion Liquidated: Over leveraged positions have been wiped out as Bitcoin crashed through key psychological support levels at $75,000 and $70,000.
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Fear & Greed Index: The market sentiment has plummeted to a record low of 5 out of 100, lower even than during the Terra/Luna or FTX collapses of 2022.
Is the Bottom In?
While some critics suggest Bitcoin could test the $50,000 support zone by summer, institutional analysts remain divided. Standard Chartered and Fidelity analysts note that while the current “crypto winter” feels brutal, the underlying infrastructure is stronger than in 2022, with institutional ETF flows acting as a potential (though currently inconsistent) stabilizer.
The immediate focus for traders is the $58,000 to $60,000 support zone. A breach below this level could open the door to a much deeper pullback toward the 200-week moving average.
