Bitcoin Price Ends Month in Freefall Around $570
After a month dominated by the collapse of Mt. Gox, the price of Bitcoin closes around $570, a drop of nearly 40% from the start of the month.
February 2014 concluded with the price of Bitcoin in a state of shock, closing the month at approximately $570. This represented a catastrophic drop of nearly 40% from its high of over $940 just one month prior. The price action was entirely dictated by the slow-motion collapse of Mt. Gox, from the initial withdrawal halts to the final bankruptcy declaration.
Each piece of negative news sent a new wave of selling across the market as investors panicked, fearing contagion and the potential for a complete loss of confidence in the ecosystem. The month's price chart serves as a stark illustration of a market absorbing a systemic shock of unprecedented scale. The $570 closing price, while a dramatic crash, also showed a degree of resilience; despite the failure of its largest exchange and the theft of 7% of its supply, Bitcoin still held significant value.
This set the floor for a long and grueling bear market, but it also proved that the network could survive a 'black swan' event of this magnitude.The month of February would be remembered as one of the darkest and most defining periods in Bitcoin's history.