The price of Bitcoin has recovered and climbed to $84,350 after falling as low as $80,000.
Investor sentiment towards risk assets such as cryptocurrencies appears to have improved after spiking throughout much of February. However, even with the late day bounce on Feb. 28, BTC is ending the month down 20% and is down about 25% since hitting an all-time high of just over $109,000 on Jan. 20, the day of U.S. President Donald Trump’s inauguration.
Despite Bitcoin’s recovery, other cryptocurrencies continue to slide lower, with Ethereum’s (ETH) price dropping 2% on Feb. 28 to trade at $2,225. Meme coins are also down after the U.S. Securities and Exchange Commission (SEC) ruled that most of the speculative assets are “not securities.” Dogecoin’s (DOGE) price has fallen more than 5% over the last day and is currently trading at $0.20.
Risk Assets
Market observers agree that sentiment towards riskier assets such as crypto are being hurt by threats of trade tariffs, a slowing U.S. economy, and signs that inflation is resurgent. Some analysts are now speculating that the market could be entering a new “crypto winter,” a situation that hasn’t occurred since 2022 following the billion dollar collapse of crypto exchange FTX.
The recovery in Bitcoin to end February coincided with a late day rally in equities, with all three major U.S. indices surging into the close. The blue-chip Dow Jones Industrial Average ended the trading session up more than 600 points while the benchmark S&P 500 index gained 1.59%.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 13.72% in the last 12 weeks.
