Bitcoin price declined steeply, reaching $85,000, amid increased sell-offs, Nvidia rally, and ETF outflows. Analysts believe the coin will reach $80,000 if the selling pressure continues.
Bitcoin is seeing a huge price decline, the coin showed the lowest value in 120 days on Wednesday, with a trading price of $82,250. If the increased ETF sell-offs continue the Bitcoin price will downtrend further in the coming days.
Bitcoin Under Bearish Pressure
Bitcoin faces a bearish trend, the coin lost around 20% in February, marking it the worst month since November 2022, in which the coin faced a similar decline with the FTX collapse.
Though the increased uncertainties and meme coin bust have created a black mark in the crypto industry, new data suggest that the price down in Bitcoin is mainly due to the invasion of Nvidia. The semiconductor tycoon has reported $39.3 billion in Q4 revenue, which is a 12% increase from its previous quarters.
Nvidia Rally Puts Bitcoin Under Bleed
Nvidia has earned significantly with GAAP and non-GAAP EPS. The GAAP earnings per share is $4.93 while from non-GAAP it is $5.16 per share. This massive performance has triggered Nvidia stock, making its carpet capitalization cross $125 billion in a single session.
With the increased investments in Nvidia stock, Bitcoin stooped down. The coin has faced a massive dropdown from $86,680 to $82,256 in a single day. This decline in Bitcoin price and increased Nvidia stock rate reduced investor’s confidence in digital assets, making many think investing in traditional equity markets is more profitable and less riskier than speculative assets like Bitcoin.
Bitcoin ETF Sell-Offs Affects Bitcoin Price
In addition to the Nvidia rally, which made investors think of the scope of the equity market, the Bitcoin price decline is also an after-effect of the massive ETF sell-offs. According to reports, Bitcoin ETFs have been facing an outflow over the last six days, resulting in a wipe-down of $2.1 billion from the crypto market.
The sell-off has made Bitcoin go below its key resistance levels, showing extreme volatility in the coming days. The lack of innovative inflows to the Bitcoin ETFs increases the risk of declined price, many anticipate the coin to reach $80,000 within a short term if the ETF sell-offs continue.
Panic Sell Offs Contribute To The Bitcoin Price Down
The crypto market has witnessed huge scams and thefts recently. The Bybit hack which led to a loss of more than $1.5 billion ETH, marking one of the largest scams reported in the crypto industry, reduced investor’s confidence in digital assets.
Tokens like Melania and Libra, whose prices soared soon after the launch and then drastically declined, have made people question the security of investing in such coins. These happenings changed the mindset of people making many think it is better to invest in stocks than in highly volatile digital assets like Bitcoin. Keeping this in mind, many sold their assets finding it better to back off before encountering a hack or scam, resulting in a price decline.
