Why is Bitcoin facing its worst losing streak since 2018? Here are 5 key factors driving BTC USD price down

Bitcoin BTC USD worst losing streak since 2018: Bitcoin’s latest slide isn’t just another dip, it’s turning into one of its toughest stretches in years.

Why Bitcoin (BTC USD) Records Worst Monthly Losing Streak Since 2018

After reaching an all-time high of over $126,000, Bitcoin has now fallen for four straight months, sliding to around $65,500. That marks a 48% drop from its peak. If February closes down 16% as expected, it will be the fifth consecutive monthly decline, something that has happened only once before, between August and December 2018, as per a report.

Why Bitcoin Price Is Falling: Tariffs, AI Fears and Macro Pressure

What’s weighing on the world’s largest cryptocurrency isn’t a single crypto crisis. Instead, it’s a mix of broader pressures. Tariff tensions, anxiety over artificial intelligence, and regulatory delays are all hanging over markets.


Tony Pecore, senior vice president and director of digital asset management at Franklin Templeton said, “Digital assets tend to respond quickly to these shifts because they trade continuously and carry higher embedded leverage, which is why we so often look to cryptocurrencies like Bitcoin as a leading indicator of changes in investor risk appetite,” as quoted by DL News.

Also read: Word of the day: Trousseau

1. Trump Tariff Threats Shake Crypto Market Sentiment

The mood is a sharp contrast to the optimism that defined much of 2025. US president Donald Trump’s pro-crypto stance and stablecoin legislation passed in July helped push the crypto market to nearly $4.4 trillion at its peak.

Now, headwinds are building. Carlos Guzman, vice president of research at GSR, said markets first reacted positively when the US Supreme Court struck down Trump’s tariffs, as per the DL News report. But sentiment reversed after Trump threatened to impose even higher global tariffs of 15%.

2. AI Layoff Concerns Add Volatility to Bitcoin

At the same time, fears about artificial intelligence are adding volatility. A report from Citrini Research warned that continued AI advances could lead to widespread white-collar layoffs, weaken consumer spending, and slow economic growth.

Also read: Bitcoin (BTC USD) price today climbs toward $66,000 after sharp overnight swing — altcoins rally as crypto futures hit $93.5 billion

3. Gold Rises 24% as Bitcoin’s Digital Gold Narrative Faces Doubt

Bitcoin’s role in the broader financial system is also being questioned. While Bitcoin has dropped, gold has risen 24% over the past five months, benefiting from the so-called debasement trade. That shift has renewed skepticism about Bitcoin’s “digital gold” narrative, Fabian Dori, chief investment officer at Sygnum Bank told DL News.

4. Is BTC USD’s Four-Year Halving Cycle Repeating

Inside crypto, familiar concerns are resurfacing. Dori noted that some investors fear the market’s historical four-year cycle tied to Bitcoin halving events may be repeating. In past cycles, Bitcoin rallied to record highs after halving before entering extended bear markets. As crypto has become more institutionalized, many had hoped this pattern would fade.

5. Clarity Act Delay Sparks Crypto Regulatory Uncertainty

Regulatory uncertainty is another pressure point. The Clarity Act, a major crypto market structure bill in the US Senate, has stalled after earlier expectations that it would pass before the end of 2025. Still, Ripple CEO Brad Garlinghouse recently said he believes there is a 90% chance it will pass by the end of April.

Is This Bitcoin Correction Healthy for Long-Term Investors

Even amid the pullback, not everyone sees the downturn as entirely negative. Pecore said “This type of correction can be constructive for the underlying ecosystem,” adding, “Speculative activity declines, and attention shifts toward fundamentals: real usage, infrastructure, and sustainable economics," as quoted by DL News.

FAQs

How do tariffs affect Bitcoin?

They influence broader investor risk appetite, which impacts crypto prices.

What does gold’s rise mean for Bitcoin?

Gold’s 24% gain has raised questions about Bitcoin’s digital gold narrative.