Bitcoin and the wider crypto market entered Friday on a downward trend, with the majority of significant tokens recording losses in the past 24 hours as traders opted to de-risk in tandem with equities after Nvidia’s earnings-induced decline. Bitcoin was trading at approximately $67,766 at the time of this report, experiencing a decline of 1.5% for the day, yet maintaining a weekly gain of 0.6%. Ethereum followed suit, dipping 1.5% over the past 24 hours to trade slightly above $2,047. Both assets continue to be confined within a tight range that has characterized price movements since the crash on February 5. The recent attempt on Wednesday to approach $70,000 represents the upper limit, while this week’s lows are probing the midpoint. The selling pressure, however, appears to resemble a leverage flush rather than a structural breakdown. Hourly returns across the board were in the green Friday morning, indicating that most of the drawdown occurred overnight, with buyers subtly re-entering the market at these levels. “What you’re seeing right now is Bitcoin trading with the broader risk market,” said Daniel Reis-Faria. “Nasdaq fell after Nvidia earnings, and crypto followed.”
Bitcoin surged towards $70,000 at a rapid pace, and when the momentum in equities falters, that swift capital exits just as swiftly from Bitcoin. Reis-Faria views the action as a strategic cleanup rather than an indication of a trend reversal. “A significant amount of leverage re-entered the system during that upward movement, and typically, when stocks begin to decline, crypto tends to be the initial area where investors reduce their risk.” “Volatility is heightened due to constrained liquidity throughout the market.” When examining the weekly chart, the overall outlook appears significantly more robust. Cardano outperformed major assets, achieving a notable 7% gain over the past week. Solana surged by 5.5%, Ethereum climbed 4.8%, and BNB increased by 4.3%, all surpassing Bitcoin’s relatively subdued weekly performance, indicating that the demand for altcoins is still strong despite the surrounding market chatter. XRP stood out as the notable exception, experiencing a decline of 3.7% over the past 24 hours and being the only top asset in the red on a 7-day basis with a slight drop of 0.1%. The underperformance is notable, especially since most altcoins managed to weather the same macro headwinds while retaining their weekly gains.
The wider macro environment provides essential context. Asian equities are poised for their strongest February since 1998, with South Korean tech stocks surging approximately 20% this month as investors shift their focus towards AI infrastructure opportunities. The recent rally has siphoned off capital from U.S. markets, positioning the MSCI Asia Pacific Index to outshine the S&P 500 for the third month in a row. The narrative in the crypto space remains consistent, echoing the same themes we’ve observed over the past few weeks. “We’re still in the same range we’ve been in,” Reis-Faria stated. “Until we observe a steady influx of new demand, these fluctuations are likely to persist.” Bitcoin functions as a macro asset in the trading landscape. “When equities pull back, Bitcoin pulls back.” Jack Dorsey points to AI-driven productivity improvements as the rationale behind Block’s reductions, but the more significant transformation lies in the payments infrastructure: stablecoin settlements pose a risk to the fee structures that fintech acquirers have depended on for an extended period.
Block is reducing its workforce to approximately 6,000 employees, marking a nearly 40% decrease from 2023 levels and bringing it close to its pre-pandemic size, as investors respond positively to a significant cost reset. Jack Dorsey points to AI-enabled efficiency as the reason for the cuts, but the underlying issue is that stablecoin-based payment systems pose a risk to the card fees that have historically fueled Block’s expansion. With the rise of AI “agentic shopping” and ongoing regulatory developments enhancing the practicality of stablecoins for daily transactions, Block is encountering significant structural margin pressures, all while its stock lingers approximately 80% beneath its peak during the pandemic.