Why did Bitcoin decrease today? The real reason for the purification of the encryption is 770 billion dollars

Deep red encryption markets, as more than $ 500 billion in only one week has been eliminated, such as the maximum market Sink up to $ 2.8 trillion. Bitcoin, the leading cryptocurrency, shattered to the lowest level in 4 months at 82300 dollars, and decreased about 15 % a week. The sudden collapse has led to huge qualifications, which destroyed $ 770 billion in the past 24 hours.

Meanwhile, the Crypto Fear & Greed index decreased to 20, showing extreme fear in the market. So, beyond the low price of Bitcoin?

Bitcoin (BTC) losses in NVIDIA RALY

One of the main reasons for Bitcoin’s decline is the mutation in artificial intelligence stocks, especially NVIDIA. The chips maker reported wonderful revenues of $ 39.3 billion in the fourth quarter, indicating a 12 % increase from the previous quarter and an increase of 78 % on an annual basis.

This strong performance caused NVIDIA shares by 4 %, adding more than $ 125 billion to the maximum market. With investors rushing to invest in high -growth AI shares, Bitcoin lost its momentum, showing a shift in investor confidence from digital assets to investments related to the prosecution.

ETFS Bitcoin Etfs continues to flow

Another major factor that affects the price of bitcoin is the continuous flow of funds circulating in Bitcoin exchange (ETFS). according to Data from FarnesBitcoin’s investment funds recorded external flows of $ 2.43 billion between February 24 and February 26.

This is seven consecutive trading sessions of external flows, and no signs of stopping appear. Leadership of external flows are major financial institutions such as fidelity, which has increased the pressure of sales in the market.

5 billion dollars of options that end on February 28

Bitcoin also faces additional pressure due to the upcoming expiration of the $ 5 billion options on February 28. A large part of these contracts is determined at higher strike prices, which makes them likely to end without profit.

Data from Deribit indicates About 78 % of these expired options, at a value of $ 3.9 billion, will not be profitable. Meanwhile, $ 1.3 billion from Bitcoin was transferred to stock exchanges, which may lead to further sale.

Bitcoin decreases to 85,000 dollars

As of now, Bitcoin is trading of about $ 85,534, which reflects a 4 % decrease over the past 24 hours. The main support level for viewing is $ 83,000, as losing this level can push Bitcoin to up to 80,313 dollars. On the other hand, if Bitcoin is able to obtain this support, you may see a recovery.

The Relative Power Index (RSI) decreased to 25.92, indicating an increase in intensity. Historically, when the relative strength index decreases to less than 30, Bitcoin tends to a vision that is bounced in the short term.