Crypto Market Slides as Bitcoin Drops Below $66,000 Again
The crypto market is once again under pressure after Bitcoin slipped below the $66,000 mark, erasing most of last week’s strong rebound. What initially looked like a solid recovery is now being seen as a temporary bounce, with sellers regaining control across major cryptocurrencies.
Key Points:
Bitcoin fell over 4% in 24 hours, dropping below $66,000.
Ethereum, Solana, and XRP also recorded heavy losses.
Strong U.S. economic data reduced expectations of near-term Fed rate cuts.
Investor interest in crypto appears to be fading.
Crypto-related stocks are falling sharply.
Live Bitcoin Price Chart:
Bitcoin Rally Fades Quickly
After crashing earlier in the week, Bitcoin briefly found support near $60,000 late Thursday and surged almost 20% on Friday, touching close to $72,000. But the rally didn’t last. By mid-week trading, Bitcoin was once again slipping, trading below $66,000 and showing clear signs of weakness.
Bitcoin 30-Day Price Chart:
Other major cryptocurrencies followed the same path. Ethereum dropped around 5.5%, Solana fell more than 5%, and XRP declined roughly 3.5%, reflecting broad market pessimism.
Strong U.S. Jobs Data Weighs on Crypto
One of the biggest reasons behind the sell-off was stronger-than-expected U.S. economic data. January job growth came in at 130,000, nearly double market forecasts, while unemployment unexpectedly fell to 4.3%. This reduced hopes for near-term Federal Reserve rate cuts.
Fed Rate Cut Probability Chart (CME FedWatch):
Since crypto often performs better when interest rates are falling, this shift in outlook has hurt market sentiment.
Investor Interest Continues to Decline
Data from Coinglass shows Bitcoin perpetual futures open interest has dropped more than 50% from its October 2025 peak, signaling reduced trading activity and lower confidence among traders.
In South Korea, analysts are seeing what they call an “exit crypto” trend. Trading volumes on the Kospi stock index surged more than 200% year-over-year, while crypto exchange volumes dropped nearly 65%.
Crypto Stocks Also Under Pressure
The weakness in crypto prices is hitting crypto-related stocks hard.
Robinhood plunged 12.5% after reporting a drop in crypto trading revenue. Coinbase fell over 7% ahead of its earnings report. Strategy slid 4.5% alongside Bitcoin. Bitmine Immersion, Circle, Galaxy Digital, and Bullish all posted losses between 3% and 5%.
Market Outlook
Unless Bitcoin regains levels above $70,000, analysts warn that downside risks remain, with $60,000 becoming a key support area to watch. With weak sentiment, fading interest, and uncertain macro conditions, crypto markets may continue to struggle in the short term before any strong recovery begins
Conclusion
Bitcoin’s drop below $66,000 highlights the fragile state of the crypto market, as fading investor confidence and shifting macroeconomic expectations continue to weigh on prices. With reduced trading activity, weak momentum across altcoins, and pressure on crypto-related stocks, the market remains in a cautious phase. Unless sentiment improves and key resistance levels are reclaimed, cryptocurrencies may continue to face short-term volatility before any meaningful recovery emerges.