Essential Market Highlights
- Bitcoin retreated 1.5% on Friday, settling near $67,766, though it preserved a 0.6% weekly gain despite trading in a narrow range
- Analysts interpret the downturn as leverage flush-out rather than trend reversal, noting buying pressure returned by Friday morning
- Altcoins demonstrated superior weekly performance compared to Bitcoin — Cardano surged 7%, Solana jumped 5.5%, Ethereum added 4.8%, BNB increased 4.3% — with XRP slipping 0.1%
- Nvidia (NVDA) shares plunged 5.5% after earnings release, pressuring U.S. stock futures and pulling cryptocurrency prices down in tandem with equities
- Asian equity indices are tracking toward their best February since 1998, drawing capital away from U.S. markets
Bitcoin faced selling pressure on Friday as U.S. stock index futures slumped following Nvidia’s substantial post-earnings decline. The cryptocurrency selloff mirrors broader risk-off sentiment permeating global financial markets.
Bitcoin traded around $67,766, marking a 1.5% intraday drop. Despite this pullback, the premier cryptocurrency preserved a 0.6% gain for the week.
Ethereum declined 1.5% in the 24-hour period, hovering just above $2,047. Both major cryptocurrencies remain confined within narrow trading ranges established after the Feb. 5 market pullback.
Nvidia plummeted 5.5% on Thursday despite exceeding fourth-quarter earnings expectations. The drop appeared to reflect investor concerns about whether massive artificial intelligence spending can justify current valuations.
Cryptocurrency prices followed equities lower as investors shed higher-risk positions. This relationship has continued for multiple weeks, with Bitcoin showing pronounced sensitivity to Nasdaq performance.
“Today’s price action demonstrates Bitcoin trading like a traditional risk asset,” stated Daniel Reis-Faria, CEO of ZeroStack. “The Nasdaq declined after Nvidia reported, and crypto markets followed suit.”
He described the selloff as technical rather than fundamental in nature. “Significant leverage had built up during the recent uptrend, and when stocks decline, crypto often becomes the first place traders reduce risk.”
By Friday’s session, hourly crypto returns had flipped positive. This rebound suggests fresh demand emerged after overnight liquidations cleared excessive leveraged positions.
Altcoins Outperform Bitcoin on Weekly Basis
Cardano led major cryptocurrency gains with a 7% weekly advance. Solana climbed 5.5%, Ethereum added 4.8%, and BNB increased 4.3%, all outpacing Bitcoin’s weekly performance.
XRP stood as the only major token recording negative weekly returns, dropping 0.1% for the week and 3.7% in 24 hours. This underperformance proved significant given most alternative cryptocurrencies navigated similar macroeconomic challenges while maintaining positive returns.
Stock Futures and Cross-Border Investment Flows
Dow futures dropped roughly 0.6%, S&P 500 futures decreased 0.4%, and Nasdaq 100 futures slipped 0.3% in Friday’s pre-market trading.
Asian equity markets are on track for their strongest February performance since 1998. South Korean tech stocks have soared approximately 20% this month as investors favored AI infrastructure plays.
The MSCI Asia Pacific Index looks poised to outperform the S&P 500 for a third straight month. This geographic shift has channeled investment capital away from U.S. exchanges.
Block stock jumped more than 23% in after-hours trading after CEO Jack Dorsey revealed plans for nearly 50% staff cuts, crediting artificial intelligence capabilities for enabling operational transformation.
Investor focus now turns to Friday’s producer price index data, with economists forecasting a 0.3% monthly rise for both headline and core wholesale inflation figures.
