Bitcoin experienced a significant decline of 18% in February, marking its most substantial monthly decrease since early 2022. However, this downturn did not correspond with a reduction in market activity; trading remained remarkably vigorous. In fact, this volatility contributed to a record-breaking trading volume of $1.8 billion at Finery Markets, representing a staggering 135% increase from the previous February.
This situation illustrates that institutional trading can flourish even amidst falling cryptocurrency prices. Finery Markets has carved out a niche as a provider of non-custodial cryptocurrency electronic communication networks (ECNs) and Software as a Service (SaaS) trading solutions for institutional clients, witnessing a notable surge in interest from institutional investors in the early months of 2025.
The impressive trading volume in February followed a strong January, where transactions reached $1.6 billion. With Bitcoin having lost approximately 12% of its value in the first quarter of 2025, it is an unexpected yet telling contrast to observe record trading volumes amid these price challenges. The consistent rise in trading activity suggests a growing appetite among market participants for reliable technology and infrastructure within the digital asset space.
Additionally, the data revealed a remarkable 152% year-over-year increase in stablecoin transactions for February, reinforcing their role as a crucial link between conventional financial systems and digital asset markets. The increasing OTC trading volumes have provided an optimistic outlook as they have more than doubled in recent months.
A recent collaboration with Sage Capital Management highlights a commitment to enhancing market liquidity through innovative trading methods, showcasing the evolution of institutional engagement within the cryptocurrency ecosystem.
Despite the robust trading figures, Bitcoin faced mounting pressure, with its price plummeting from a January peak of $109,000 to around $77,000 in early March due to various economic uncertainties and Bitcoin-specific issues. Global trade tensions, particularly those stemming from U.S. tariffs on key trading partners, have led to inflation concerns and a general withdrawal from riskier assets like cryptocurrencies. Reports indicate that the broader crypto market has lost nearly half a trillion dollars in value since early February.
Disillusionment regarding the Strategic Bitcoin Reserve, proposed by U.S. authorities and initially anticipated as a potential positive driver for Bitcoin prices, escalated market negativity. Instead of new purchases, the reserve will rely on existing government-seized Bitcoin, extinguishing prospects for fresh capital influx.
Simultaneously, Bitcoin exchange-traded funds (ETFs) listed in the U.S. encountered significant outflows exceeding $3 billion, reflecting diminishing investor confidence. Adding to the turmoil, a massive $1.5 billion hack at the Bybit exchange contributed to an already fragile market environment.
Ethereum, the second-largest cryptocurrency, has also suffered, plummeting over 50% since its high in January, now trading at its lowest point in over a year.
Considering these market dynamics, analysts are forecasting potential further declines for Bitcoin. Although the currency briefly held above the $80,000 mark, it remains beneath key technical indicators, such as the 200-day exponential moving average (EMA). The approach of the 50-day EMA crossing below the 200-day EMA could be signaling a long-term downturn—often referred to as a “death cross.”
As investors assess the market’s future, speculation has arisen regarding how low Bitcoin’s price might go. Many forecasts suggest a possible drop to $70,000, aligning with levels seen in November. This viewpoint has been echoed by multiple analysts who indicate that the current price correction appears within the normal range for a bullish market cycle.
In summary, while February showcased striking trading volumes in the face of declining prices, the ongoing economic backdrop and market events could dictate Bitcoin’s trajectory as it navigates through a challenging landscape. The interplay between institutional trading activity and the cryptocurrency’s price fluctuations underscores the complexity of the current market environment.