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.
worst week since the covid crash and btc only dropped to 46k. tells you how different 2021 was from 2020
2.35 billion spot volume on kraken alone, 12% above average. people were panic selling and buying the dip at the same time
eth down 26% in a week while cardano somehow went green. ada holders were so smug about this lmao
btc dropped 13k in 24 hours and still finished the week above 46k. the bid support was insane back then