Bitcoin experienced a significant decline, falling below $80,000 and extending its drop to 27% from its all-time high in January. This decline was prompted by outflows from Bitcoin ETFs, as investors withdrew more than $2 billion from spot Bitcoin ETFs in February. In contrast, gold ETFs saw increased inflows, indicating a shift towards traditional safe-haven assets. However, compared to past Bitcoin cycles, this current pullback is relatively mild. The decline is occurring as traders reassess expectations for Federal Reserve interest rate cuts and geopolitical tensions and a $1.5 billion security breach on the Bybit exchange have further compounded market jitters. Long-term holders of Bitcoin are holding steady, while newer investors are responsible for the selling pressure. The future trajectory of Bitcoin is uncertain, as historical data suggests that recoveries can take anywhere from weeks to over a year, depending on market conditions and sentiment. Traders are closely monitoring support levels and ETF flows for signs of renewed demand.



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