Monthly Update February | What happened to Bitcoin
In this month's update, we will delve into the significant events of the past month that have influenced the crypto market. Particularly, news from the White House has had a substantial impact on the market. Additionally, a crucial crypto summit is scheduled, led by Trump. Read on for more details.
Major hack at ByBit
The biggest news of the past month is the hack at crypto exchange ByBit. This occurred on February 21st, resulting in the loss of approximately $1.5 billion in Ethereum. This was extracted from a single cold wallet that hackers managed to breach. All other wallets at ByBit remained untouched, according to CEO Ben Zhou. Customers did not lose any funds; only ByBit itself incurred losses. This attack caused significant turmoil in the crypto market, leading not only Ethereum and Bitcoin to plummet but also other altcoins. The market now appears to be recovering.
The imposed trade tariffs shocked the macroeconomy to such an extent that Bitcoin dropped by 7.28% in a single day. This even pushed it below $80,000, which many investors consider a 'bottom line'. Furthermore, ETH fell by 11%, Solana (SOL) by 15%, and Cardano (ADA) by as much as 20%. The crypto market is not the only sector affected by the new plans: the S&P 500 index and Nasdaq also fell by 1.76% and 4% in value, respectively, following the final decision. Although Trump's plans are initially intended to stimulate the American economy, they are currently having an adverse effect in the short term.
On Sunday, March 2nd, Trump suddenly spoke about a strategic crypto reserve, including not only Bitcoin but also Ethereum, XRP, Solana (SOL), and Cardano (ADA). This news caused a brief surge, with BTC even touching $95,000 and many altcoins rising sharply. Very large amounts of BTC, XRP, and ETH were transferred from cold wallets to trading exchanges, primarily from whales. Transferring crypto from cold to hot wallets is usually done for selling purposes. This expectation led to a rapid price drop after the intense surge. However, Bitcoin now seems to be slowly rising back towards $90,000, and investors are cautiously becoming bullish again.
First 'Crypto Summit' on 7 March
To reinforce his promise as the 'crypto president', Trump is presenting the first-ever American crypto summit on Friday, March 7th. Several CEOs, investors, and members of the Presidential Working Group on Digital Assets will be present. Notable names include Michael Saylor, co-founder of Strategy, Matt Huang, co-founder of Paradigm, Brian Armstrong, CEO of Coinbase, and Arjun Sethi, CEO of Kraken. The goal is to establish a clear direction for the future of crypto and blockchain technology in the US. Discussions will primarily focus on regulation, innovation, and economic freedom. It will be interesting to see what comes out of this meeting and what impact it will have on the crypto market.
Previous transactions by Mt. Gox led to strong market movements, but this time it seems to have little effect. On previous occasions, the Bitcoin price fell following news of transactions from Mt. Gox. This is mainly because a massive sell-off is expected afterwards. However, Bitcoin is currently in a turbulent period and has been fluctuating all week. These fluctuations are mainly caused by reports from the White House.
Mt. Gox went bankrupt in 2014 and lost 800,000 Bitcoin at the time. Thousands of creditors have been waiting for years to get their Bitcoin back. Mt. Gox started repaying last year. The exchange has until November 2025 to do so.
February remarkably poor for Bitcoin
February 2025 ended as the worst February in eleven years for Bitcoin. In recent years, the month has predominantly closed in positive territory, with only one exception, but for the first time since 2014, there was a substantial drop of 17%. Why did Bitcoin experience such a poor month? Several causes can be identified, not solely related to current politics.Major hack at ByBit
The biggest news of the past month is the hack at crypto exchange ByBit. This occurred on February 21st, resulting in the loss of approximately $1.5 billion in Ethereum. This was extracted from a single cold wallet that hackers managed to breach. All other wallets at ByBit remained untouched, according to CEO Ben Zhou. Customers did not lose any funds; only ByBit itself incurred losses. This attack caused significant turmoil in the crypto market, leading not only Ethereum and Bitcoin to plummet but also other altcoins. The market now appears to be recovering.
Plans in the White House
President Donald Trump's name has been in the news almost daily this past month. He is clearly determined to fulfil his "America first" promises. The trade tariffs he is imposing on Canada and Mexico, among others, are causing significant repercussions. Both countries have been subjected to 25% tariffs on goods exported to the US since Tuesday, March 3rd. Moreover, China faces an additional 10% tariff, bringing their total to 20%. This seems to be leading to a 'trade war', as these countries are also taking their own measures and planning to impose trade tariffs on the US.The imposed trade tariffs shocked the macroeconomy to such an extent that Bitcoin dropped by 7.28% in a single day. This even pushed it below $80,000, which many investors consider a 'bottom line'. Furthermore, ETH fell by 11%, Solana (SOL) by 15%, and Cardano (ADA) by as much as 20%. The crypto market is not the only sector affected by the new plans: the S&P 500 index and Nasdaq also fell by 1.76% and 4% in value, respectively, following the final decision. Although Trump's plans are initially intended to stimulate the American economy, they are currently having an adverse effect in the short term.
On Sunday, March 2nd, Trump suddenly spoke about a strategic crypto reserve, including not only Bitcoin but also Ethereum, XRP, Solana (SOL), and Cardano (ADA). This news caused a brief surge, with BTC even touching $95,000 and many altcoins rising sharply. Very large amounts of BTC, XRP, and ETH were transferred from cold wallets to trading exchanges, primarily from whales. Transferring crypto from cold to hot wallets is usually done for selling purposes. This expectation led to a rapid price drop after the intense surge. However, Bitcoin now seems to be slowly rising back towards $90,000, and investors are cautiously becoming bullish again.
First 'Crypto Summit' on 7 March
To reinforce his promise as the 'crypto president', Trump is presenting the first-ever American crypto summit on Friday, March 7th. Several CEOs, investors, and members of the Presidential Working Group on Digital Assets will be present. Notable names include Michael Saylor, co-founder of Strategy, Matt Huang, co-founder of Paradigm, Brian Armstrong, CEO of Coinbase, and Arjun Sethi, CEO of Kraken. The goal is to establish a clear direction for the future of crypto and blockchain technology in the US. Discussions will primarily focus on regulation, innovation, and economic freedom. It will be interesting to see what comes out of this meeting and what impact it will have on the crypto market.
Mt. Gox moves 1 billion dollar in Bitcoin
The bankrupt crypto exchange Mt. Gox has moved another 12,000 Bitcoin to an unknown wallet address this week. This is approximately worth $1 billion. Mt. Gox, after its bankruptcy 10 years ago, has been in the process of repaying creditors for a few months. Such a transaction has been carried out for the first time since December. At that time, Mt. Gox moved approximately 1,620 BTC through a series of unknown wallets.Previous transactions by Mt. Gox led to strong market movements, but this time it seems to have little effect. On previous occasions, the Bitcoin price fell following news of transactions from Mt. Gox. This is mainly because a massive sell-off is expected afterwards. However, Bitcoin is currently in a turbulent period and has been fluctuating all week. These fluctuations are mainly caused by reports from the White House.
Mt. Gox went bankrupt in 2014 and lost 800,000 Bitcoin at the time. Thousands of creditors have been waiting for years to get their Bitcoin back. Mt. Gox started repaying last year. The exchange has until November 2025 to do so.