The cryptocurrency market is facing a significant downturn, with Bitcoin experiencing a steep decline of 15% over the past week. This slide brings Bitcoin to its lowest point in four months, priced at $82,300. The drop has resulted in an astonishing $770 billion being wiped off the market within just 24 hours, as reflected by the Crypto Fear & Greed Index plummeting to 20, signaling extreme trepidation among traders. What triggered this drastic shift in Bitcoin’s valuation?
How Are AI Stocks Impacting Bitcoin?
A key factor contributing to Bitcoin’s decline is the burgeoning interest in AI stocks, particularly following NVIDIA’s impressive quarterly earnings report. NVIDIA revealed a 12% increase in revenue for Q4 2024, amounting to $39.3 billion, which is a remarkable 78% rise compared to the previous year. In the aftermath of this announcement, NVIDIA’s stock price surged by 4%, boosting its market capitalization by $125 billion.
Why Are Bitcoin ETFs Experiencing Large Withdrawals?
Another significant influence on Bitcoin’s price is the large-scale withdrawals from Bitcoin exchange-traded funds (ETFs) in the U.S. Between February 24 and 26, 2025, a staggering $2.43 billion was removed from spot Bitcoin ETFs. This reflects a broader selling trend that has been ongoing for the past week, with major financial players like Fidelity contributing to the increased selling momentum.
- Bitcoin’s price has fallen 15% within a week.
- AI stocks, particularly NVIDIA, have drawn investor interest away from cryptocurrencies.
- Massive withdrawals from Bitcoin ETFs amounting to $2.43 billion indicate reduced risk appetite among investors.
- Technical indicators suggest Bitcoin is oversold, with a critical support level at $83,000.
Currently, Bitcoin is priced at $86,439, with analysts monitoring a crucial support level at $83,000. Should this level be breached, a further decline to $80,313 may ensue. However, if buying interest increases at this support level, a price recovery could be on the horizon.
