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The cryptocurrency market has experienced a sharp decline, with Bitcoin 
$106,618 losing 15% of its value in the past week, dropping to its lowest level in four months at $82,300. This significant drop resulted in $770 billion being liquidated from the market within 24 hours. The Crypto Fear & Greed Index has fallen to a level of 20, indicating extreme fear among traders. So, what caused Bitcoin’s price to plunge so dramatically?
Bitcoin Bleeds While NVIDIA Shares Rise
One of the primary reasons for the decline in Bitcoin’s price is the intense interest in AI stocks. Particularly, the robust quarterly financial results announced by NVIDIA have shifted investors’ focus towards AI stocks. NVIDIA’s revenue for Q4 2024 reached $39.3 billion, marking a 12% increase quarter-on-quarter and a staggering 78% year-on-year rise. Following this announcement, NVIDIA’s stock surged by 4%, adding $125 billion to its market value.
Investors have shifted their attention from the volatility in Bitcoin and other cryptocurrencies to AI stocks. Consequently, Bitcoin lost its upward momentum, increasing the downward pressure on its price.
Massive Outflows from Bitcoin ETFs
Another critical factor affecting Bitcoin’s price is the massive outflows from exchange-traded funds (ETFs) in the United States. Between February 24 and 26, 2025, a total of $2.43 billion was withdrawn from spot Bitcoin ETFs.
This situation is part of a selling wave that has persisted over the last seven trading days. Major financial institutions, such as Fidelity, continue to sell Bitcoin, amplifying the selling pressure on the market. The decline in investors’ risk appetite makes it difficult for Bitcoin to recover.
Additionally, the expiration of $5 billion in Bitcoin options contracts on February 28 is exerting further pressure on prices. It is anticipated that $3.9 billion in options contracts will close at a loss, increasing the likelihood of investors selling their Bitcoin holdings.
At the time of writing, Bitcoin is trading at $86,439, with a critical support level identified at $83,000. Technical indicators suggest that the largest cryptocurrency has entered an oversold territory. If this support level is broken, there is a possibility that the price could decline to $80,313. However, if buying interest emerges from this level, a recovery may be anticipated.
