Bitcoin (BTC) price plunged to a new 120-day lows of $82,250 on Wednesday Feb 28 as US tech stocks sell-off spread bearish headwinds across the crypto sector. Markets data shows a prolonged selling spree among Bitcoin ETFs could escalate the BTC price downtrend further.
Bitcoin (BTC) losses in February surpass 20% amid NVIDIA rally
Bitcoin (BTC) remains under intense bearish pressure, sinking to fresh multi-month lows as macroeconomic uncertainty and aggressive capital rotation weigh on the market. BTC has now lost over 20% in February, marking its worst monthly performance since the FTX collapse in November 2022.
While the BTC price decline has been primarily attributed to multiple macro factors, one of the biggest catalysts emerged from an unexpected source: NVIDIA’s explosive earnings report. The semiconductor giant posted $39.3 billion in Q4 revenue, marking a 12% increase quarter-over-quarter and a staggering 78% jump year-over-year.
Profits also skyrocketed, with GAAP earnings per share (EPS) at $4.93, up 33% from the previous quarter, while non-GAAP EPS soared 28% to $5.16. This blockbuster performance triggered a 5% rally in NVIDIA’s stock, adding over $500 billion to its market capitalization within a single session.
As capital flooded into high-growth AI stocks, Bitcoin suffered. BTC price plunged 5% on Thursday alone, dropping from $86,680 to $82,256, highlighting a dramatic loss of investor confidence in digital assets. The sharp correction reflects mounting concerns over U.S. protectionist trade policies, geopolitical tensions, and sticky inflation, which could drive investors toward traditional equity markets rather than speculative assets like Bitcoin.
Bitcoin ETFs bleed $2.1 billion in six consecutive days
Beyond NVIDIA’s dominance in equity markets, Bitcoin’s downtrend has been reinforced by a persistent exodus of institutional capital from BTC exchange-traded funds (ETFs).
According to, Bitcoin ETFs have recorded outflows for six straight trading sessions, wiping out $2.1 billion from the market. This trend began on February 18 and intensified after NVIDIA’s earnings, as investors reallocated funds toward high-performing tech stocks.
Breakdown of Bitcoin ETF Outflows (Feb 18 – Feb 25), according to Fairside data:
- Feb 18: -$60.7M
- Feb 19: -$64.1M
- Feb 20: -$364.8M
- Feb 21: -$62.9M
- Feb 24: -$539.0M
- Feb 25: -$1.14B
Total Outflows: $2.1 billion withdrawn in six days
This persistent outflow suggests that institutional investors are shifting away from Bitcoin exposure in favor of equities. If NVIDIA’s rally continues and capital rotation intensifies, BTC could remain vulnerable to further downside.
The absence of fresh inflows into BTC ETFs weakens Bitcoin’s support structure, raising the risk of a deeper correction below $80,000 in the short term. If macroeconomic pressures persist, BTC could struggle to reclaim its psychological support at $85,000, leaving it exposed to further losses.
Bitcoin is facing a perfect storm of capital flight, macroeconomic uncertainty, and an AI-driven stock market frenzy. The $2.1 billion ETF outflow underscores investor hesitancy, with BTC’s February losses now exceeding 20%.
With NVIDIA absorbing billions in liquidity, Bitcoin’s short-term trajectory hinges on whether capital outflows slow or accelerate. If AI stocks continue their ascent and BTC ETF redemptions persist, Bitcoin could be at risk of testing $80,000 sooner rather than later.
BTC Price Forecast: $80K support at risk
Bitcoin price forecast charts show momentum remains under severe bearish pressure, with BTC trading at $84,784 after a 20.53% decline over the past 26 days. The sell-off has intensified as BTC breaks below key support levels, with Bollinger Bands (BB) indicating extreme volatility. The price is now hovering near the lower BB at $86,736, while the upper BB sits at $102,907, highlighting the magnitude of recent downside moves.
The Relative Strength Index (RSI) has plunged to 25.92, a deeply oversold level not seen in months. Historically, RSI below 30 suggests that BTC could be due for a short-term relief rally. However, the downtrend remains strong as the RSI continues to trend lower, confirming sustained selling momentum. If Bitcoin fails to reclaim the mid-BB resistance at $94,822, bearish pressure could drive BTC toward the psychological $80,000 level, where buyers may attempt to re-enter.
Despite the bearish breakdown, a potential short-term bounce remains possible if BTC stabilizes above $84,500 and RSI begins to recover. If Bitcoin closes a daily candle above $86,736, bulls may regain control and push prices toward $90,000. However, failure to hold above $84,000 could accelerate losses, exposing BTC to a steeper drop below $80,000 in the coming sessions.
The post Bitcoin Price Analysis: NVIDIA exposes BTC to $80K breakdown risk as ETFs bleed $2.1B in 6 days appeared first on CoinGape.
