Key Takeaways
- Bitcoin hovers around $62,900, posting a 7.5% weekly decline while remaining confined within a $60,000–$70,000 corridor
- Major altcoins face steeper losses — ETH, XRP, SOL, and DOGE recording 8–11% weekly decreases
- Selling pressure across alternative cryptocurrencies reaches a five-year peak, with limited buyer interest
- Concerns over AI disruption are triggering capital flight from technology equities and digital assets
- American equity futures showed modest recovery Tuesday following 1%+ losses across the Dow, S&P 500, and Nasdaq
Bitcoin declined to approximately $62,900 during Tuesday’s trading session, marking a 2.1% daily decrease and a 7.5% weekly slide. The leading digital currency has remained trapped within a $60,000-to-$70,000 corridor following a sharp correction on February 5.
Alternative cryptocurrencies are experiencing more severe declines compared to bitcoin. Ethereum tumbled to $1,829, reflecting an 8% weekly loss. XRP declined 10.8%, Solana retreated 11.3%, and Dogecoin fell nearly 10%.
Blockchain data analytics platform CryptoQuant reported that selling pressure across the altcoin sector has reached its highest level in five years. This indicates that current holders are actively liquidating positions in a market environment characterized by limited buying demand.
This pattern of persistent selling tends to erode prices gradually. Unlike sudden price crashes that often entice bargain hunters, this steady erosion makes it challenging for market participants to identify optimal entry points.
Alex Kuptsikevich, chief market analyst at FxPro, characterized bitcoin’s recent price action as consolidation rather than a trend reversal. He identified a bearish pennant pattern developing on the daily timeframe.
According to his analysis, a breakdown below the mid-$65,000 level would signal additional downside potential. Conversely, a breakout above $70,000 would invalidate the bearish formation.
Bitcoin currently trades 48% beneath its record high and 5.5% under its 2021 peak of $69,000. Extended consolidation within this range increasingly tilts the technical outlook toward sellers.
Artificial Intelligence Concerns Impact Cryptocurrency Markets
Citrini Research published analysis this week highlighting an emerging “AI scare trade.” The research raised questions about potential AI-driven disruption across delivery services, payment processors, and software enterprises.
This assessment sparked selling activity in technology-related equities. When risk appetite diminishes in traditional markets, cryptocurrencies typically experience similar pressure, as both asset classes compete for the same investor capital.
Monday’s session saw the Dow Jones Industrial Average decline substantially, influenced partly by a 13% plunge in IBM shares. Both the S&P 500 and Nasdaq dropped more than 1%, pushing the S&P 500 back into year-to-date negative territory.
Equity Futures Show Tentative Rebound
US equity futures displayed modest gains during early Tuesday trading. Dow futures advanced 0.1%, S&P 500 futures gained 0.2%, and Nasdaq 100 futures increased 0.3%.
This tentative recovery followed investor reassessment of AI disruption risks and President Trump’s proposal to implement 15% global tariffs.
AI company Anthropic scheduled a product announcement for Tuesday. Historical product launches from Anthropic have previously triggered sell-offs in cybersecurity and software sectors, prompting analyst caution about potential market reactions.
Market participants are also monitoring Tuesday’s consumer confidence release and Home Depot’s earnings report. Wednesday’s calendar features quarterly results from Nvidia, Salesforce, and Snowflake.
