The post Why Bitcoin Price is Down Today? Wiped Out $500 in Billion appeared first on Coinpedia Fintech News
Crypto markets are in deep red, with over $500 billion wiped out in just a week as the market cap plunges to $2.8 trillion. Bitcoin, the pioneer cryptocurrency, has crashed to a 4-month low of $82,300, dropping nearly 15% in a week. The sudden crash has triggered massive liquidations, wiping out $770 billion in the last 24 hours.
Meanwhile, the Crypto Fear & Greed Index has dropped to 20, showing extreme fear in the market. So, what’s behind Bitcoin’s price drop?
Bitcoin (BTC) losses amid NVIDIA rally
One of the main reasons for Bitcoin’s decline is the surge in AI stocks, particularly NVIDIA. The chipmaker reported an impressive $39.3 billion revenue in Q4, showing a 12% increase from the previous quarter and a massive 78% rise year-over-year.
This strong performance caused NVIDIA’s stock to rally by 4%, adding over $125 billion to its market cap. As investors rushed to invest in high-growth AI stocks, Bitcoin lost momentum, showing a shift in investor confidence from digital assets to AI-related investments.
Bitcoin ETFs Outflow Continues
Another major factor affecting Bitcoin’s price is the ongoing outflow from Bitcoin exchange-traded funds (ETFs). According to data from Farside, Bitcoin ETFs recorded outflows of $2.43 billion between February 24 and February 26.
This marks seven consecutive trading sessions of outflows, showing no signs of stopping. Leading the outflows are major financial institutions like Fidelity, which has increased selling pressure in the market.
$5 Billion In Options Expiring On Feb 28
Bitcoin is also facing additional pressure due to the upcoming expiration of $5 billion worth of options contracts on February 28. A significant portion of these contracts is set at higher strike prices, making them likely to expire without profit.
Data from Deribit suggests that around 78% of these expiring options, worth $3.9 billion, will not be profitable. Meanwhile, $1.3 billion in Bitcoin has been moved to exchanges, which could lead to more selling.
Bitcoin Falls To $85,000
As of now, Bitcoin is trading at around $85,534, reflecting a 4% drop in the past 24 hours. The key support level to watch is $83,000, as losing this level could push Bitcoin further down to $80,313. On the other hand, if Bitcoin manages to hold this support, it could see a recovery.
The Relative Strength Index (RSI) has fallen to 25.92, indicating extreme oversold. Historically, when the RSI drops below 30, Bitcoin tends to see a short-term price bounce.
