 ▲ U.S. Bitcoin (BTC) |
The cryptocurrency market is moving lower as fading expectations for an interest rate cut, driven by solid U.S. employment data, combined with the failure to break key resistance levels.
On February 27 (local time), cryptocurrency-focused outlet BeInCrypto reported that major assets, including Bitcoin (BTC), are facing downward pressure due to macroeconomic uncertainty and technical selling. In particular, the U.S. weekly initial jobless claims released the previous day came in at 201,000, below market expectations, reaffirming the strength of the labor market. This sparked fears that the Federal Reserve would maintain its high interest rate stance for a longer period. As a result, Treasury yields climbed and risk appetite sharply deteriorated, triggering significant capital outflows from the crypto market.
Bitcoin attempted to reclaim the psychological resistance level of $70,000 but failed to overcome strong selling pressure around the 200-week moving average and near its 2021 all-time high, leading to a pullback. Technically, the $68,000 level has turned into resistance, severely weakening short-term upward momentum, with prices at one point threatening to fall toward the $67,000 range. Experts warn that after failing to secure a position above major trend lines, further downside correction appears inevitable, and volatility is likely to persist as the market searches for lower support levels.
Slowing institutional buying has also been cited as a key factor behind the market’s decline. The Coinbase premium turned negative, widening to -$167.8, meaning Bitcoin was trading at a lower price on Coinbase compared to overseas exchanges. This indicates aggressive selling by U.S.-based institutions. Although inflows into spot Bitcoin ETFs recently surpassed $500 million, suggesting a temporary rebound, there is growing concern that flows could revert to net outflows following the release of macroeconomic data, further worsening supply-demand conditions.
The altcoin market is likewise struggling amid overlapping negative factors affecting major assets. XRP saw exchange reserves surge 10.58%, building up potential sell-side supply worth $3.98 billion, while Ethereum (ETH) is having difficulty defending the $2,000 support level, extending its year-to-date losses. On-chain data for major assets show retail investors engaging in panic selling, while whales are depositing holdings onto exchanges and strengthening profit-taking positions, adding to downward pressure.
The crypto market’s sentiment index currently stands at 12, indicating a state of extreme fear and reflecting strong risk-off behavior among investors. As analyses gain traction suggesting that a market bottom may form in the second half of 2026, liquidity constraints are likely to result in prolonged sideways movement and stepwise declines for the time being. Market participants are maintaining a cautious stance focused on risk management, closely monitoring upcoming employment and inflation data that could influence the Federal Reserve’s policy path.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.