Bitcoin endured a brutal week in late February 2021, recording its worst weekly decline in nearly a year as the flagship cryptocurrency tumbled below the psychologically important dollar50,000 threshold amid a broad risk-asset sell-off.
TL;DR
- Bitcoin fell below dollar50,000 on February 26, 2021, capping off a devastating week for crypto bulls
- The decline marked the worst weekly slide since March 2020, with BTC down approximately 17% over seven days
- Ethereum suffered even steeper losses, dropping below dollar1,600 and ending the week down roughly 26%
- Total spot trading volume hit dollar2.35 billion on Kraken, 12% above the 30-day average
- Cardano (ADA) defied the trend, posting a 3% daily gain to trade above dollar1.10
BTC Fails to Hold dollar50,000 Support
The cryptocurrency had been on a spectacular run throughout early 2021, surging past dollar58,000 and pushing the total crypto market capitalization above dollar1.7 trillion. However, the rally hit a wall during the week of February 22, when Bitcoin shed more than dollar13,000 in value within roughly 24 hours.
Bulls attempted a recovery that briefly pushed BTC back above dollar51,500 on multiple occasions, but sellers intensified the pressure. By February 26, Bitcoin was changing hands at approximately dollar46,340, according to CoinMarketCap data. The total market capitalization stood at roughly dollar864 billion.
According to Bloomberg, the sell-off represented Bitcoin’s roughest weekly patch since the COVID-induced crash of March 2020, when BTC plummeted below dollar4,000 on some exchanges before staging a dramatic recovery.
Ethereum and Altcoins Join the Bloodbath
Ethereum fared even worse. After trading above dollar2,000 just days earlier, ETH plunged to around dollar1,446 on February 26, marking a weekly decline of approximately 26%. The world’s second-largest cryptocurrency by market cap saw its valuation drop to roughly dollar166 billion.
Binance Coin (BNB) also lost ground, falling back to the dollar240 level after its own parabolic run. Polkadot (DOT) declined 2.9% to dollar30.21, Litecoin (LTC) dropped 3.8% to dollar172.13, and Bitcoin Cash (BCH) shed 3.4% to trade near dollar482.
The sell-off was widespread. According to Kraken’s daily market report, total spot trading volume across all markets reached dollar2.35 billion on February 26, which was 12% higher than the 30-day average of dollar2.1 billion. Futures notional volume hit dollar751.3 million, indicating significant derivatives activity as traders positioned themselves for further volatility.
Cardano Defies the Downturn
Not every cryptocurrency was painted red. Cardano (ADA) emerged as a notable outlier, posting a 3.0% daily gain to trade at dollar1.11. ADA’s market capitalization exceeded dollar38 billion, making it the third-largest cryptocurrency at the time. The rally was fueled by growing anticipation around the Mary hard fork, which would bring native token functionality to the Cardano blockchain.
Monero (XMR) also gained 4.7% to reach dollar207.37, while Tezos (XTZ) added 1.9% to trade at dollar3.40. Chainlink (LINK) managed a modest 1.2% gain at dollar24.99.
JPMorgan Endorses Bitcoin Despite the Dip
Institutional sentiment remained broadly positive even as prices fell. JPMorgan had recommended earlier in the week that investors allocate a small portion of their portfolios to Bitcoin, signaling growing mainstream acceptance. The recommendation came as spot BTC ETF applications continued to make headlines and corporate treasuries increasingly added Bitcoin to their balance sheets.
The broader macro environment, however, was less supportive. Rising Treasury yields pressured risk assets across the board, with tech stocks and cryptocurrencies both facing headwinds. The total crypto market shed approximately dollar260 billion during the week, a stark reminder of the volatility that accompanies outsized gains.
Why This Matters
The February 2021 pullback demonstrated both the resilience and the volatility inherent in crypto markets. Bitcoin’s ability to attract institutional endorsements from firms like JPMorgan—even during a 17% weekly decline—signaled a maturing market. Meanwhile, the divergence between BTC and altcoins like Cardano hinted at the emerging narrative of multi-chain ecosystems that would define much of the 2021 bull run. For investors, the episode was a reminder that 20-30% drawdowns are a regular feature of Bitcoin bull markets, not a signal of their end.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
17% weekly drop and everyone was calling end of cycle. BTC was at 50k. we were barely halfway.
2.35 billion spot volume on kraken alone, 12% above avg. someone was buying this dump hard.
2.35b volume on kraken with 12% above avg says institutions were buying the dump while retail was panic selling. same story every cycle
leveraged_cope exactly, 2.35b kraken volume alone was institutional accumulation not retail panic
leveraged_cope $2.35B Kraken volume 12% above average. someone was absolutely eating this dump. retail was puking while whales loaded up
leveraged_cope $2.35B kraken volume 12% above average. retail was puking and whales were loading. same playbook every single cycle and people still panic sell
kraken_whale_ $2.35B kraken volume 12% above 30 day average. retail was panic selling right into whale limit orders. same story every crash
calling end of cycle at 50k when BTC was barely halfway to the top. capitulation_bot was right, we had another 100%+ to go from there
Fatou Ndiaye calling the cycle over at $50K when BTC had another 100% to run is the most classic crypto capitulation take. worst week since march 2020 and people still havent learned
cycles_are_fake_ BTC below 50K in Feb 2021 and people called the cycle over. it hit 69K nine months later. capitulation at the 50K level aged incredibly poorly
ETH dropped 26% and ADA went up 3%. the rotate-into-altcoins narrative started right here.
worst weekly drop since march 2020 and we all know what happened after that. buy when theres blood.
worst week since march 2020 and BTC was at $50K. people calling the cycle over at literally the halfway point. classic
ADA pumping 3% while everything else crashed 20% was such a teaser for the altseason that followed. cardano ran from $1.10 to $3 in a few months after this
ETH dropping 26% while ADA pumped 3% was the first real sign that altseason was decoupling from BTC moves
ADA pumping 3% to $1.10 while BTC dropped 17% was the altseason teaser nobody took seriously. Cardano ran to $3 within months after this
ETH down 26% in a week while ADA gained 3%. the alt rotation during the BTC crash told you everything about where liquidity was flowing next