After crashing throughout the week, bitcoin bottomed late Thursday at $60,000 before a huge Friday rally took the price almost 20% higher to just $72,000. However, that mare looks more and more like the “dead cat” type.
By mid-morning in the US, bitcoin has fallen sharply again, trading just below $66,000 and down more than 4% over the past 24 hours. Ether and solana is lower at closer to 5.5% and XRP has fallen 3.5 per cent.
Higher earlier in the session, US stocks have returned to broadly flat on the day. Gold and silver are higher by 0.8% and 3.2% respectively.
Earlier Wednesday, the U.S. government reported job growth of 130,000 in January, nearly double economists’ forecasts. Unemployment fell unexpectedly to 4.3%.
That prompts interest rate traders to pull back quickly due to possible expectations of impending interest rate cuts from the Federal Reserve. They are now pricing in just a 6% chance of an easing in March and a 23% chance of a rate cut in April, according to CME FedWatch. Before the report, the chances of a move in March were 21%, and the chances of a move in April were 52%.
Whether rate cuts would have pulled crypto out of its bear market is debatable. After all, this sharp downward action began in 2025 when the Fed eased monetary policy at three consecutive meetings.
Interest wanes
With so many other assets across the globe in bull markets, while crypto continues to falter, investor interest in crypto seems to be fading.
Coinglass reported on Wednesday 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 get tired,” an analyst told Bloomberg in a story about South Korean investors bailing on crypto as the country’s Kospi stock market index hits record highs.
Monthly trading volume on Kospi increased 221% year-over-year last month, the story continued, while trading on crypto exchanges fell around 65%.
“This is a washout,” the analyst said. “Retail is exhausted and fleeing to Kospi.”
Crypto stocks are falling sharply across the board
There is nothing green to be found across the entire crypto-related equity sector. Robinhood (HOOD) is lower by 12.5% after reporting a sharp drop in crypto trading revenue in the fourth quarter. That’s drawing on peer Coinbase ( COIN ) , which is lower by 7% ahead of its earnings report scheduled for Thursday evening.
Leading bitcoin tax company Strategy ( MSTR ) is down 4.5% and ether tax giant Bitmine Immersion ( BMNR ) is down 3.8%.
Circle Financial (CRCL) is lower by 4.7%, Galaxy Digital (GLXY) by 3.2% and Bullish (BLSH) by 5.3%.
