Cryptos crumble, bitcoin falls through $66,000, as Friday's bounce fades

After crashing throughout the week, bitcoin BTC$67,477.29 bottomed late last Thursday at $60,000 before a mammoth Friday rally took the price nearly 20% higher to just shy of $72,000. That bounce, however, is looking more and more like the "dead cat" type.

In mid-morning U.S. trade, bitcoin is down sharply yet again, trading just below $66,000 and down more than 4% over the past 24 hours. Ether ETH$1,960.88 and solana SOL$80.04 are lower by closer to 5.5% and XRP XRP$1.3823 is down 3.5%.

Higher earlier in the session, U.S. stocks have returned to roughly flat on the day. Gold and silver are higher by 0.8% and 3.2%, respectively.

Earlier Wednesday, the U.S. government reported January job growth of 130,000, nearly doubling economist forecasts. The unemployment rate unexpectedly dipped to 4.3%.

That has interest rate traders quickly retreating on any expectations for imminent Federal Reserve rate cuts. They're now pricing in just a 6% chance of a March easing and a 23% chance for an April rate cut, according to CME FedWatch. Prior to the report, the chances of a March move were 21%, and those of an April move were 52%.

Whether rate cuts would have pulled crypto out of its bear market is arguable. After all, this sharp downside action began in 2025 as the Fed eased monetary policy at three consecutive meetings.

Interest wanes

With so many other assets across the globe in bull markets as crypto continues to falter, it appears that investor interest in crypto is disappearing.

Coinglass on Wednesday reported that bitcoin perpetual futures open interest has fallen again and now stands 51% below its October 2025 peak, "signaling a significant retreat in trader conviction and leverage."

"We’re seeing an ‘exit-crypto’ movement as investors grow tired," one analyst told Bloomberg in a story about South Korean investors bailing on crypto as that country's Kospi stock market index hits record highs.

Monthly trading volume on the Kospi was up 221% year-over-year last month, the story continued, while trading on crypto exchanges was down about 65%.

"This is a washout,” the analyst said. “Retail is exhausted and fleeing to the Kospi.”

Crypto stocks sharply lower across the board

There's no green to be found across the entire crypto-related stock sector. Robinhood (HOOD) is lower by 12.5% after reporting a sharp decline in crypto trading revenue in the fourth quarter. That's dragging on peer Coinbase (COIN), which is lower by 7% ahead of its earnings report scheduled for Thursday evening.

Leading bitcoin treasury firm Strategy (MSTR) is down 4.5% and ether treasury giant Bitmine Immersion (BMNR) is off 3.8%.

Circle Financial (CRCL) is lower by 4.7%, Galaxy Digital (GLXY) by 3.2% and Bullish (BLSH) by 5.3%.