Bitcoin Shaken by Nvidia Shock, Start of a Downtrend or Just a Breather?
Bitcoin Shaken by Nvidia Shock, Start of a Downtrend or Just a Breather?
Risk-off sentiment triggered in the New York stock market following Nvidia’s earnings announcement spread to the cryptocurrency market, leading major coins including Bitcoin (BTC) to weaken across the board. However, experts caution against excessive pessimism, diagnosing the decline as a healthy process of clearing out overheated leverage rather than a structural collapse of fundamentals.
According to CoinDesk on Feb. 27 (local time), Bitcoin was trading around $67,766, down 1.5% over the past 24 hours, though it still maintained a weekly gain of 0.6%. Ethereum (ETH) also fell 1.5% to hover near $2,047, moving in tandem. Since the sharp sell-off on Feb. 5, major cryptocurrencies have been trapped in a narrow range, using the $70,000 level as resistance while continuing an intense search for direction.
Market experts agree that the overnight wave of selling does not mark the beginning of a new bear market. Daniel Reiss-Faria, CEO of Zerostack, explained that as the Nasdaq retreated in the wake of Nvidia’s earnings, the digital asset market simply followed suit. When momentum in the stock market slows, investors typically reduce risk exposure first in the cryptocurrency market. In other words, the recent pullback reflects a natural unwinding of leveraged positions accumulated during the short-term rally.
Notably, despite macroeconomic headwinds, major altcoins outperformed Bitcoin on a weekly basis, demonstrating resilient investor sentiment. Cardano (ADA) led the market with a 7% weekly gain, while Solana (SOL) rose 5.5%, Ethereum gained 4.8%, and BNB advanced 4.3%. In contrast, XRP (Ripple) fell 3.7% over 24 hours and posted a 0.1% weekly loss, standing out as the only top asset in negative territory.
The current market trend is closely tied to major shifts in global capital flows. Fueled by surging investment in artificial intelligence (AI) infrastructure, South Korean tech stocks have jumped about 20% this month, putting Asian markets on track for their best February since 1998 and drawing significant capital away from the U.S. market. Bitcoin, now firmly categorized as a macro asset, continues to move in tandem with equities. Until strong new buying demand enters the market, a narrow range-bound trend driven by global liquidity flows is expected to persist.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from it. The content should be interpreted solely for informational purposes. |
