Historic First-Quarter Plunge Red Flag... Bitcoin Faces 'Double Red' Fear for First Time in 8 Years

▲ Bitcoin (BTC)

Bitcoin (BTC) is on the verge of posting its worst first-quarter performance since 2018, spreading unprecedented fear across the cryptocurrency market. For the first time in its history, both January and February closed in negative territory, marking a so-called “double red” record that has sharply frozen investor sentiment.

According to Cointelegraph on February 16 (local time), Bitcoin faces a strong possibility of recording its weakest quarterly return in eight years due to sustained downward pressure since the beginning of the year. This marks the first time in Bitcoin’s history that it has posted consecutive monthly losses in January and February. Some market analysts warn that the current situation reflects structural flaws on a different level from the routine corrections that preceded past bull markets.

The decline is attributed to a combination of macroeconomic uncertainty and capital outflows from institutional investors. With the U.S. Federal Reserve maintaining high interest rates and concerns over persistent inflation, demand for risk assets such as Bitcoin has largely disappeared. The market is gripped by fears that the nightmare of 2018—when Bitcoin plunged nearly 50% in the first quarter—could be repeating itself.

Technical indicators are also pointing downward across the board. As key support levels continue to collapse, experts interpret the consecutive declines in January and February as a potential signal of a long-term trend reversal. Bitcoin has effectively lost its upward momentum and is now struggling to defend against further losses. Some analysts suggest that the outcome of this quarter’s close could determine the overall market direction for the rest of the year.

The cryptocurrency market has entered a severe downturn, facing the dual challenges of liquidity shortages and a halt in new investment inflows. The historic back-to-back declines in January and February are fundamentally shaking the optimism that has supported the market thus far. Investors now stand at a critical crossroads, needing to adopt cautious asset management strategies in preparation for the possibility that a major crash similar to 2018 could unfold again.

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