"Bitcoin Plunges to 120-Day Low as NVIDIA's Earnings Spark AI Stock Rally"

Bitcoin's price has been on a downward trajectory, with the cryptocurrency reaching a new 120-day low of $82,250 on Wednesday, February 28. This decline comes amidst a broader sell-off in US tech stocks, which has spread bearish headwinds across the crypto sector. Market data indicates that a prolonged selling spree among Bitcoin ETFs could exacerbate the BTC price downtrend.

Bitcoin's losses in February have surpassed 20%, marking its worst monthly performance since the FTX collapse in November 2022. While the BTC price decline has been primarily attributed to multiple macro factors, one of the biggest catalysts emerged from an unexpected source: NVIDIA's explosive earnings report. The semiconductor giant posted $39.3 billion in Q4 revenue, marking a 12% increase quarter-over-quarter and a staggering 78% jump year-over-year. Profits also skyrocketed, with GAAP earnings per share (EPS) at $4.93, up 33% from the previous quarter, while non-GAAP EPS soared 28% to $5.16. This blockbuster performance triggered a 5% rally in NVIDIA's stock, adding over $500 billion to its market capitalization within a single session.

As capital flooded into high-growth AI stocks, Bitcoin suffered. BTC price plunged 5% on Thursday alone, dropping from $86,680 to $82,256, highlighting a dramatic loss of investor confidence in digital assets. The sharp correction reflects mounting concerns over U.S. protectionist trade policies, geopolitical tensions, and sticky inflation, which could drive investors toward traditional equity markets rather than speculative assets like Bitcoin.

Beyond NVIDIA's dominance in equity markets, Bitcoin's downtrend has been reinforced by a persistent exodus of institutional capital from BTC exchange-traded funds (ETFs). According to data, Bitcoin ETFs have recorded outflows for six straight trading sessions, wiping out $2.1 billion from the market. This trend began on February 18 and intensified after NVIDIA's earnings, as investors reallocated funds toward high-performing tech stocks.

The persistent outflow suggests that institutional investors are shifting away from Bitcoin exposure in favor of equities. If NVIDIA's