Bitcoin Slides Amid Risk-Off Mood, But Weekly Gains Persist
By John Nada·Feb 27, 2026·4 min read
Bitcoin and major cryptocurrencies faced losses as traders de-risked amid a risk-off mood, yet weekly gains remained intact for many assets.
Bitcoin faced downward pressure on Friday, reflecting a broader risk-off sentiment in the market. Most major cryptocurrencies experienced losses over the last 24 hours as traders de-risked alongside equities, notably following Nvidia's earnings-driven pullback. Bitcoin traded around $67,766, down 1.5% on the day but still managing a 0.6% gain for the week. Ethereum mirrored this decline, also down 1.5% to just above $2,047, as both assets remain trapped in a tight range since the February 5 crash, with recent price action showcasing a struggle to break free from these defined levels.
Analysts suggest that the current downturn resembles a leverage flush rather than a structural trend reversal. Hourly returns showed a green trend on Friday morning, indicating that the majority of selling occurred overnight while buyers began to return at these levels. Daniel Reis-Faria, CEO of ZeroStack, noted that Bitcoin is closely following the broader risk market dynamics. As equities, particularly the Nasdaq, fell after Nvidia's earnings, Bitcoin reacted similarly. "When momentum in equities stalls, that fast money comes off just as quickly in Bitcoin," Reis-Faria explained, highlighting the sensitivity of Bitcoin to fluctuations in traditional stock markets.
This behavior underscores Bitcoin's correlation with traditional equities, particularly during periods of heightened market volatility. A significant amount of leverage had returned to the system during Bitcoin's recent rise, and as stocks began to sell off, crypto was often the first asset class where investors de-risked. The tight liquidity across markets has elevated volatility, making it essential for investors to remain cautious in their trading strategies. However, a broader look at the weekly performance reveals a more favorable landscape for some cryptocurrencies. Cardano led major assets with a 7% gain over the week, followed closely by Solana with 5.5%, Ethereum at 4.8%, and BNB at 4.3%. This suggests that despite the immediate price action, there is ongoing appetite for altcoins, hinting at potential resilience beneath the surface noise.
In stark contrast, XRP stands out with a decline of 3.7% in 24 hours and a slight loss of 0.1% over the week, marking it as the only major asset showing consistent underperformance. This divergence in performance among altcoins amplifies the narrative of market sentiment, as most other cryptocurrencies managed to withstand macroeconomic pressures without sacrificing weekly gains. This indicates a complex interplay between different cryptocurrencies, where some assets can thrive even in challenging market conditions, while others struggle to maintain their footing.
The current market environment provides a backdrop of shifting capital flows, particularly as Asian equities are poised for their best February since 1998. This surge is driven by strong performances from South Korean tech companies, which are up around 20% this month as investors rotate into AI infrastructure plays. This shift in capital has drawn investment away from U.S. markets, with the MSCI Asia Pacific Index outperforming the S&P 500 for the third consecutive month. Such trends highlight the evolving landscape of investment opportunities, where traditional equities and cryptocurrencies are influenced by global market movements.
For the crypto market, this trend underscores the ongoing struggle to establish consistent new demand. Reis-Faria emphasized, "We're still in the same range we've been in. Until we see consistent new demand, these moves are going to keep happening." As long as Bitcoin continues to trade in tandem with the macro landscape, its price movements will likely reflect the ebb and flow of traditional equity markets, further emphasizing the interconnectedness of these asset classes. This reliance on macroeconomic indicators is a critical factor for investors to consider when making decisions about their cryptocurrency holdings.
The current market dynamics showcase the challenges Bitcoin faces as it navigates a complex macroeconomic environment. Increased correlation with equities could lead to prolonged periods of volatility, particularly in response to shifts in investor sentiment. As liquidity tightens, the ability of Bitcoin and other cryptocurrencies to attract new demand becomes crucial for their price stability and growth potential. This situation emphasizes the importance of monitoring macroeconomic indicators and equity performance as key drivers for future crypto price movements, further solidifying Bitcoin’s role as a macro asset.
Understanding these trends is essential for investors as they position themselves in a volatile environment. The interplay between traditional markets and cryptocurrencies will continue to shape price dynamics, suggesting that strategic positioning and awareness of broader economic signals are vital for navigating the current landscape. As Bitcoin and altcoins alike react to changes in traditional markets, the ability to anticipate these shifts could prove beneficial for those looking to capitalize on the evolving digital currency landscape.