TechFlow news — On March 3, the Bitfinex Alpha report showed that Bitcoin dropped 17.39% in February, marking its worst February performance since 2014 and the second-worst February on record. Since bottoming after the FTX collapse in November 2022, Bitcoin's bull market corrections have typically ranged between 18% and 22%. However, this February saw a pullback of 28.3% from January’s all-time high of $109,590—the most significant correction since the end of the bear market.
On March 2, former U.S. President Donald Trump announced plans to establish a U.S. Cryptocurrency Strategic Reserve, triggering a strong market rebound. Bitcoin surged 20% from its recent lows, with a single-day gain exceeding 12%. However, subsequent selling pressure pushed prices back down to around $92,000. Bitfinex analysis suggests that prior to the release of detailed plans for the reserve, macroeconomic conditions—including movements in the S&P 500—will heavily influence Bitcoin's trajectory over the coming weeks.
The report also highlights growing complexities in the U.S. economy, including persistent inflation, declining consumer confidence, and slowing economic growth. January’s personal consumption expenditures (PCE) inflation data revealed a year-over-year increase of 2.5%, surpassing the Federal Reserve’s 2% target. Rising service costs and new import tariffs are expected to further constrain the Fed’s ability to adjust interest rates, reducing the likelihood of near-term rate cuts.
