iShares Bitcoin Trust ETF Stocks (NASDAQ: IBIT) It fell 17% in February, according to data from S&P Global Market Intelligence. The BlackRock Exchange-Taded Fund essentially tracks the price of Bitcoin.
Bitcoin ETFs plummeted in February, as most assets are considered dangerous. These fears were spurred by plunging consumer and Nchiement measurements as President Trump threatened tariffs in several countries and threatened massive federal layoffs.
Bitcoin evangelists have advertised the potential as a valuable repository if other currencies lose value due to inflation. But, as with recent market history, cryptocurrencies have really acted like a volatile technology inventory.
When inflation escalated in 2022, as some believed, Bitcoin might have thought it was resilient as a hedge. However, before it recovered, prices actually plummeted, like many other stocks in various sectors.
The code also reached an all-time high of just over $100,000 in February, causing major clashes after the November election. President Trump had pledged to dismantle the cryptocurrency industry and make America the “World’s Bitcoin capital.” He also vowed to create a strategic Bitcoin reserve.
But digital tokens, like many stocks shot in the aftermath of the election, quickly returned to Earth as economic uncertainty erased post-election uplift. Tariff horrors emerged throughout February as the administration announced a one-month delay in tariffs in Mexico, Canada and China set on February 1.
Until February, as the deadline approached, the prospects for tariffs and federal layoffs under the government efficiency programme rose, sparking some highly negative consumer sentiment readings. The threatened tariffs actually came into effect on March 4th, but on Thursday the administration quickly tickled another month’s delay on certain goods subject to the 2020 US-Mexico-Canada trade agreement.
All the uncertainties combined to make investors fear a recession in late February will escape from risky assets that contain Bitcoin.
It appears Trump is doing something good, or at least partially, creating a strategic Bitcoin reserve, that it is at least one of his promises. On Thursday, the administration’s “Crypto Czar” David Sacks announced that the president has signed an executive order creating a strategic reserve. However, it is not funded by new government purchases, but rather formed by maintaining the roughly 200,000 bitcoins the government has already seized in criminal and civil cases.
The story continues