 ▲ Bitcoin (BTC) price decline |
Bitcoin (BTC) has entered a death phase marked not by a single market-crashing plunge but by an accumulation of minor negative factors. As a result, investors’ patience is wearing thin.
According to cryptocurrency media outlet 99Bitcoins on February 15 (local time), the Bitcoin market is experiencing a typical deterioration in supply and demand, where continuous small-scale selling persists despite the absence of a clear major negative catalyst, breaking support levels one after another. Market analysts describe this as a gradual erosion more frightening than a single massive shock, a process in which asset values are slowly chipped away before investors even realize it. While past sharp downturns were temporary panics driven by fear, the current situation is more severe in that it reflects deep-seated helplessness and fatigue spreading across the entire market.
One of the biggest causes is the silent outflow from spot ETFs, a key channel for institutional capital. Although products from major asset managers such as BlackRock and Fidelity have not seen massive withdrawals, small amounts of funds are steadily exiting each day, gradually dismantling the liquidity wall that had been supporting the market’s lower bound. As Bitcoin’s short-term appeal declines among institutional investors, new inflows have stagnated, while existing holdings slowly seep into the market, eroding its underlying strength.
The accumulated pressure from mining entities is also acting as an invisible blade weighing on the market. Mining companies responsible for maintaining the Bitcoin network’s computing power are mechanically selling a certain amount of Bitcoin daily to cover operating costs, and these volumes, combined with a thinning order book, are accelerating price declines. Although there are no signs of large-scale miners dumping holdings all at once, the issue is that the market lacks sufficient buying energy to absorb the ongoing supply.
Technically, as a descending triangle pattern with lower highs becomes evident, confidence in the psychological threshold of $60,000 has dropped sharply. Market participants are maintaining selling strategies, using each rebound as an opportunity to exit, which creates strong resistance whenever upward momentum attempts to build. In the absence of a new bullish catalyst, the ongoing dull sideways movement and slight declines are inducing capitulation among retail investors, further draining market vitality.
Ultimately, the current pain Bitcoin is experiencing goes beyond a simple price correction and reflects the growing pains of a paradigm shift in the market. While its integration into the institutional financial system has acted as a buffer reducing volatility, it has also become a constraint that makes Bitcoin more sensitive to macroeconomic uncertainties. Until this tedious bleeding stops and a new powerful narrative emerges to reverse sentiment, the market is likely to trace a low-volatility downward curve for the time being.
Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses based on it. The content should be interpreted solely for informational purposes.