Bitcoin continues to lose grounds in February with an 8% drop. However, realized capitalization shows growth, sustaining the market against significant downturns.
Increase in Bitcoin's Realized Capitalization
Since early February, Bitcoin has shown modest growth of $160 billion in new net money. This indicates an increased economic footprint in Bitcoin investments.
Decline in Transaction Volumes and Wallet Activity
Researchers reported a 76% drop in daily Bitcoin transaction volumes and a 74% decrease in wallet activity over the past week. Nevertheless, long-term investors continue to show resilience, avoiding panic-selling.
Potential for Further Bitcoin Decline
In February, Bitcoin experienced a short-term decline of 11.30% to $91,100, though it managed to close daily candles above $95,000. However, support levels are at risk of weakening, which could lead to further price drops below $90,000.
While Bitcoin faces challenges in February, the long-term outlook remains steady due to investments and growth in realized capitalization.
