Bitcoin dips as ETF outflows, strong dollar spur selling

• Lyla Velez
• February 28, 2026
• News
• 0 Comments

Key Points:

• Crypto market dropped over 5% as macro, geopolitical nerves sap risk appetite.
• Selling pressure centered on large-cap tokens amid cross-asset volatility unsettling speculators.
• Bitcoin profit-taking persists; on-chain accumulation tempers declines, not sharp risk-off episodes.

The global crypto market fell by over 5% in the last 24 hours as risk appetite weakened on macro and geopolitical nerves, according to CoinGape. Selling pressure concentrated in large-cap tokens, with cross-asset volatility unsettling speculative positioning.

Bitcoin-led profit-taking remains a core theme, but on-chain metrics still point to accumulation and rising demand, as reported by Coinpedia. That divergence, spot buyers absorbing while price drifts, can slow declines, though it rarely offsets sharp risk-off episodes in the short term.

Today’s drivers: Bitcoin ETF outflows, U.S. dollar strength, liquidations

U.S. spot Bitcoin ETF flows have swung negative, eroding a key demand channel that supported prices last year. Outflows typically force managers to redeem underlying BTC, adding marginal sell pressure during fragile liquidity windows. This dynamic can intensify intraday moves when it overlaps with derivatives stress.

“U.S. spot Bitcoin ETFs have recorded ~$2.6 billion in net outflows so far in 2026,” as reported by MarketWatch.

The policy backdrop also matters. Based on commentary from BTCC, speculation around Kevin Warsh as a potentially more hawkish Federal Reserve Chair has reinforced expectations for a firmer U.S. dollar, which usually weighs on non-yielding assets like Bitcoin (BTC). The same source highlights that leveraged long liquidations, estimated around $1–$2.5 billion over short spans, have accelerated downside as margin calls cascade through perpetuals and futures.

Sentiment gauges have shifted toward fear, a backdrop that can amplify headline sensitivity, according to Coin360. At the time of this writing, Bitcoin trades near $63,385, with recent realized volatility around 7.94%, underscoring fragile liquidity conditions into month-end.

Geopolitics and risk appetite: how headlines amplify crypto moves

Crypto continues to trade as a high-beta expression of global risk appetite. Escalating geopolitical tension, most recently cited between the U.S. and Iran, has encouraged de-risking across speculative assets, while safe-haven demand and a stronger dollar dull crypto bid depth. In this regime, negative headlines can catalyze outsized intraday swings as liquidity thins.

“Bitcoin slips toward $65000 and faces a potential fifth straight monthly decline, the longest losing streak since …,” as reported by The Economic Times. Prolonged drawdowns often coincide with broader macro uncertainty, reinforcing defensive positioning among institutions and retail alike.

Institutional researchers have cautioned that further downside is possible if key supports fail and macro conditions tighten, as reported by Business Insider on Ned Davis Research’s view. That said, history shows crypto pullbacks can be brief when policy clarity improves and flows stabilize. Conditions remain fluid; interpretations here are informational and reflect evolving data rather than advice.