February 2025 Crypto Recap: Trump’s Crypto Reserve, Investor Exodus,  Macro Pressures, and Whale Sell-offs

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Veronika Rinecker

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Veronika Rinecker

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Veronika Rinecker is based in Germany and studied international journalism and media management. She specializes in reporting on topics such as politics and regulation, energy, blockchain, and...

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Last updated:

March 5, 2025 10:03 EST

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Here’s a summary of the key events that influenced the cryptocurrency market in February 2025:

Bitcoin Faces Setback: February Slump Sees Nearly 9% Drop & Record ETF Outflows

Bitcoin dropped nearly 9% in February, mirroring a broader risk-off market.

On-chain activity weakened, with active wallets down 14%, new wallets down 15%, and transactions dipping 1%.

The decline in price and user activity was fueled by economic uncertainty, as US trade tariffs imposed by President Trump on Mexico, Canada, and China rattled investors.

Signaling increasing investor demand for the safest assets, yields on the 10-year US Treasury fell to their lowest level in three months. The US dollar also weakened against a basket of global currencies, as reflected in the DXY Index, which fell to 106.38 at the end of February, also a three-month low.

Bitcoin mining revenue fell 11.5% to $1.24 billion in February, while transaction fees dropped 19%, signaling lower network demand. Despite this, mining difficulty rose by 2%, pushing smaller miners to the edge.

Miners’ shares took a hit, with Bitdeer falling 25% and Cipher Mining down 17% after reporting widening losses. Bitdeer blamed its weak performance on Bitcoin’s 2024 halving, which slashed mining rewards.

Bitcoin ETFs in January 2025

US spot Bitcoin ETFs saw record net outflows of $3.56 billion, a 177% drop from January, marking their worst month since they launched in January 2024.

If you’re interested in more detailed and valuable market insights, check out Cryptonews’ in-depth price analyses, which offer expert forecasts for Bitcoin and other coins.

Bitcoin News – February 2025 Highlights

Texas Lawmakers Refile Bitcoin Reserve Bill, Expanding Scope to Include Other Cryptos

The new legislation, Senate Bill 21 (SB 21), replaces a previous version and introduces more flexible investment strategies.

Strategy Buys $2 Billion More Worth Of Bitcoin

Strategy has been buying up Bitcoin since 2020.

Crypto Prices Spike as Trump Declares Bitcoin, Ether, and Major Altcoins as Reserve Assets

Trump said that Bitcoin and Ether would serve at the heart of the reserve, in a strong endorsement for both assets.

Ethereum Report: Ether Crashes to 16-Month Low as Whales Sell Off and On-Chain Activity Slumps

In February, Ether’s price dropped by over 32%, driven by market volatility, macroeconomic pressures, and large whale liquidations.

The entire cryptocurrency market faced turbulence, with ETH falling to around $2,000 in early March, its lowest price in 16 months.

Another key factor in Ether’s decline was the sudden emergence of two dormant whales who deposited 135,548 ETH – worth nearly $400 million – into Bitfinex after six years of inactivity. This massive influx of supply exerted downward pressure on Ether’s price, as increased selling by large holders typically leads to weaker market demand.

Ethereum on-chain activity also reflected the overall downturn. The number of transactions fell by 6%, dropping to 35.6 million in February. Active wallets declined by 10%, reaching 14.1 million, while new wallet growth provided a rare positive metric, increasing by 36% to 5.3 million. This suggests that while experienced users may have reduced their engagement, new participants continue to enter the network, possibly attracted by the current low prices.

Staker revenue suffered a sharp decline, falling 37% to $172.52 million compared to January. This drop was largely due to lower transaction fees, which fell 41% to $20.59 million. The decrease in fees suggests reduced network demand, as fewer transactions resulted in less revenue for Ethereum validators. As on-chain activity slowed, staking yields declined, making Ethereum staking less attractive for participants seeking passive income.

Ethereum Top Gainers and Losers in February

Ethereum News – February 2025 Highlights

Major Ethereum Upgrade Pectra Goes Live on Holesky Testnet

Activated at epoch 115,968, the upgrade aims to stress-test new features in a controlled environment.

Ethereum Foundation Allocates $120 Million of ETH to DeFi Protocols

The Ethereum Foundation’s $120 million ETH injection into Aave and Spark reflects a shift in treasury strategy amid inflation concerns.

Brazil’s B3 Stock Exchange to Launch Bitcoin Options and Futures for ETH and SOL

Bitcoin futures, which were introduced in April 2023, have been generating approximately R$5 billion ($860 million) in monthly trading volume.

Ethereum ETFs in January 2025

US spot Ether ETFs also saw reduced interest from institutional investors. Monthly inflows shrank to $60.1 million, marking a 41% drop from January’s $101.15 million. The declining appetite for Ethereum-based investment products mirrored the broader market correction, as investors pulled back amid economic concerns and waning confidence in risk assets.

If you’re interested in more detailed and valuable market insights, check out Cryptonews’ in-depth price analyses, which offer expert forecasts for Ether and other coins.

Solana’s February Slump: Declining Activity & Capital Exodus

Solana‘s price plunged 36% in February, outpacing Ether (-32%) and Bitcoin (-9%).

User activity also declined, with active and new addresses dropping 34% and 17%, respectively, while transactions fell 14% to 3 billion.

The downturn is tied to disappointment in Solana-based meme coins, especially the Libra token, supported by Argentina’s President Javier Milei.

As confidence in the blockchain wanes, nearly $136.8 million in crypto flowed from Solana to Ethereum and over $125 million to Arbitrum in February, signaling a potential capital exodus.

Solana‘s advanced technology has attracted its fair share of bad actors, even though the technology itself is neutral. However, despite setbacks, this future shakeout of bad actors could strengthen Solana in the long run by raising high industry standards and increasing trust in its ecosystem.

Solana Top Gainers and Losers in January

Solana News – February 2025 Highlights

Coinbase Expands US Crypto Futures Market with CFTC-Regulated Solana Contracts

Coinbase now offers 19 futures contracts, including Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE).

Solana Proposal to Slash Inflation by 80% Heads to Community Vote

Solana’s proposed shift to a dynamic inflation model is raising debate over network sustainability and decentralization.

Sol Strategies Increases SOL Holdings by CAD $7.3M, Now Holds 214,342 SOL

Sol Strategies increases SOL holdings to 214,342, valued at $41.2M, signaling an increased confidence and a way of supporting the Solana ecosystem.

If you’re interested in more detailed and valuable market insights, check out Cryptonews’ in-depth price analyses, which offer expert forecasts for Solana and other coins.

What to Look for in March’s Key Events

In March 2025, several macroeconomic events and major conferences could have an impact on the cryptocurrency market.

Macroeconomic Events:

• Trade Tariffs: Donald Trump’s imposition of significant tariffs on imports from Mexico, Canada, and China in March is fueling economic uncertainty and impacting investor sentiment toward high-risk assets like cryptocurrencies.
• Employment and Inflation Data: Upcoming releases of US employment figures and inflation statistics may affect market dynamics, as strong labor market data could influence interest rate decisions, subsequently impacting cryptocurrency investments.
• European Central Bank (ECB) Interest Rate Decision (March 7): The ECB’s anticipated interest rate cut, amid concerns over economic stimulus and inflation control, could influence global liquidity and cryptocurrency valuations.
  

Major Conferences:

• White House Crypto Summit: Donald Trump will host the inaugural White House Crypto Summit on March 7, bringing together crypto founders, CEOs, and investors to discuss regulatory policies and the role of cryptocurrencies in the US financial system.
• Crypto Assets Regulation and Compliance Conference: On March 12-13 in Gauteng, South Africa, this conference will address regulatory governance, compliance, and risk in the crypto asset ecosystem, involving banks, service providers, and government entities
• Web3 Amsterdam: Taking place on March 13-14, 2025, in Amsterdam, Netherlands, this conference focuses on the evolution of decentralized technologies and their impact on various sectors.
• Digital Asset Summit: Taking place from March 18-20 in New York City, this summit focuses on the intersection of traditional finance (TradFi) and digital assets, featuring discussions on regulatory developments, market infrastructure, and institutional adoption.
• Next Block Expo: Set for March 19-20, 2025, in Warsaw, Poland, this expo aims to connect blockchain enthusiasts and professionals to explore emerging opportunities in the crypto industry.
• Crypto Assets Conference (CAC25A): Scheduled for March 26 in Frankfurt, Germany, this conference will convene over 500 industry experts to explore topics like tokenized securities, digital assets, and artificial intelligence in finance.

Several concrete developments in the coming months could significantly influence the cryptocurrency market.

Firstly, potential US and state-level crypto reserves, featuring assets like Bitcoin, Ether, and other altcoins, could accelerate global institutional adoption.

Secondly, further altcoin ETF approvals – Solana, XRP, Litecoin (LTC), and others – would broaden investor access, potentially increasing market liquidity.

Thirdly, the growth of real-world asset (RWA) tokenization offers new investment opportunities by linking traditional assets with blockchain. Tokenizing physical assets, such as real estate or commodities, could attract both institutional and retail investors seeking broader exposure to tangible assets.

Finally, the EU’s Markets in Crypto-Assets (MiCA) regulation currently implements a comprehensive regulatory framework that could attract new business to Europe, while increasing compliance requirements and costs that will be particularly difficult for smaller firms to manage.

Crypto investors should carefully consider the current economic landscape. For more detailed information, check out Cryptonews price predictions for Bitcoin, Ether, and Solana.