After a sharp move early Wednesday, Bitcoin The dollar fell in the US afternoon and fell to intraday lows below $66,000, putting pressure on the lower end of its recent range.
Trading overnight at $68,500, BTC has fallen 2.5% in the past 24 hours and was last trading at $66,200.
Cryptocurrency stocks that started the day strong followed suit, either giving up gains or falling across the board. The most notable was Coinbase (COIN), which was up 3% in the morning and down 2% in the afternoon. Strategy (MSTR), the largest corporate holder of Bitcoin, fell about 3% as the underlying asset weakened.
After a quick opening, U.S. stocks gave up most of their gains shortly before the close. Surprisingly hawkish minutes from the Federal Reserve’s Federal Open Market Committee (FOMC) January meeting didn’t help either. As expected, most at the Fed agreed with the decision to pause rate cuts, but oddly some suggested the Fed was backing “two-sided” guidance in which the central bank might choose to raise rates if inflation continues to remain sticky.
The dollar was already higher on the day, with the U.S. Dollar Index (DXY) – which measures the greenback against a basket of major foreign currencies – climbing to its highest level in nearly two weeks. A stronger U.S. dollar tends to put pressure on risk assets, and Wednesday’s crypto recession appears to fit that pattern.
With today’s drop, Bitcoin is now facing its fifth consecutive weekly decline, its worst losing streak since 2022’s lengthy bear market.
The current level still faces a key test. The $66,000 area acted as support last week and helped fuel a rally above $70,000. If that floor collapses decisively, traders may start eyeing the early February lows of $60,000 or a fresh leg lower.
