Bitcoin’s (BTC) price continued its correction with another 7% decline on Feb. 28, taking the price below $80,000. BTC’s current weekly returns of -18.46% is its largest weekly drawdown since November 2022.
Bitcoin weekly chart. Source: Cointelegraph/TradingView
Bitcoin drops as Trump announces 10% tariff on China
Bitcoin and the collective crypto market continued to react negatively to the development of US tariffs with nations such as China, Mexico, and Canada.
On Feb. 27, the US president announced an additional 10% tariff on goods from China, which will collectively bring the total tariffs to 20%, going into effect on March 4.
Related: Bitcoin sheds nearly all Trump election gains in plummet under $80K
Trump also reinforced his intentions to move ahead with 25% tariffs on Canadian and Mexican imports, which will be implemented on the same date. Likewise, Canadian Prime Minister Justin Trudeau said the neighboring nation was also preparing for an “immediate and extremely strong response.”
In light of the comments, the total crypto market cap declined by 8.5%, with the US equities market losing 1.5% over the past day.
Spot Bitcoin ETFs bleed $3.6B in February
Bitcoin’s sharp bearish price movement in February dampened demand for spot ETFs, driving total outflows to approximately $3.65 billion. On Feb. 25, the market saw a massive $1.1 billion outflow, the largest single-day withdrawal since the ETFs were introduced.
Spot Bitcoin ETFs netflows. Source: Sosovalue
The current outflow streak dates back to Feb. 18, with all Bitcoin ETFs registering more than $1.5 billion in outflows in the past four days.
Ki Young Ju, CryptoQuant founder, believes this downtrend might stick around for a while, saying,
“Bitcoin spot ETF demand is weak. Price recovery could take some time.”
Bitcoin fills CME gap: is $70K next?
Bitcoin’s downward spiral continued beyond the fair value gap (FVG) between $81,000 and $85,000, dropping below $80,000 for the first time since November 2024.
As Cointelegraph reported, BTC is now filling the CME gap, which ranges between $80,000 to $77,000.
Bitcoin 1-day chart. Source: Cointelegraph/TradingView
The $74,000 level will be the next stop if this area fails to provide support for a price recovery, which marked the prior all-time high (ATH) peak in March 2024.
Meanwhile, the relative strength index (RSI) is now oversold on the daily timeframe, the lowest level since August 2023, when Bitcoin ranged between $25,000.
Related: When will Bitcoin price bottom?
But while this increases the chance of a bounce, Magus, an anonymous crypto trader, believes that the bottom is closer to $70,000. He expects traders will sell into any immediate short-term bounce until the $70,000 level is reached.
It is important to note that the $70,000 mark is the US election result day price. Historically, Bitcoin has never re-visited its US election day value after moving higher in 2016 and 2020.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
