PANews on February 28 reported, according to The Block, that Bitcoin is expected to end February's trading with a 21% drop, marking its second-worst February performance in history. The only time it performed worse was in February 2014, when Bitcoin fell 30% due to the impact of the Mt. Gox hacking incident. After briefly dipping below $79,000 in the past 24 hours, Bitcoin is currently hovering above $80,000. Coinbase analysts said the recent price correction is partly due to a lack of positive catalysts to boost investor confidence.

Coinbase analysts David Han and David Duong said in a Friday report, "In our view, this decline is due to a lack of positive short-term catalysts in the space, coupled with a lack of technical support between $80,000 and $95,000." Coinbase analysts highlighted the weakness in U.S. macroeconomic sentiment, noting that the University of Michigan Consumer Sentiment Index fell 10% month-over-month, and the Conference Board Consumer Confidence Index fell 7%. These indicators have exacerbated concerns about economic slowdown, putting pressure on risk assets, including cryptocurrencies. The flow of institutional funds reflects a cautious sentiment in the market. Over the past week, the U.S. spot Bitcoin ETF has seen outflows of over $2.9 billion. Meanwhile, the lending market also reflects a risk-off sentiment, with leverage declining and funding rates broadly declining.

Coinbase analysts also said that nearly $2 billion in perpetual futures were liquidated earlier this week, significantly reducing leverage in the system. Additionally, the analysts noted that the Bitcoin and Ethereum CME basis rates have declined to 5%, with the Bitcoin CME basis reaching its lowest level since March 2023.