Following a period of fluctuations early on Wednesday, bitcoin $BTC$66,250.94 experienced a downturn during the afternoon hours in the U.S., dipping below $66,000 and applying pressure to its recent lower range.
After reaching $68,500 overnight, $BTC recorded a 2.5% decline over the last 24 hours and was last seen trading at $66,200.
The cryptocurrency stocks that began the day positively also followed suit by reducing their gains or shifting into negative territory across the board. A notable example is Coinbase (COIN), which reversed its 3% morning gain into a 2% loss by afternoon. Meanwhile, MicroStrategy (MSTR), recognized as the largest corporate holder of bitcoin, saw its shares drop approximately 3% alongside weakening asset prices.
Despite an energetic start to trading sessions in U.S. markets, many gains were relinquished shortly before closing time. This trend was exacerbated by unexpectedly hawkish minutes from January’s Federal Open Market Committee (FOMC) meeting held by the Federal Reserve. While most members supported pausing rate cuts as anticipated, several indicated that they might consider “two-sided” guidance—implying potential rate hikes if inflation remains persistent.
The U.S. dollar strengthened further today; with the dollar index (DXY)—which gauges the greenback against various major foreign currencies—reaching its highest point in nearly two weeks. A stronger dollar typically exerts downward pressure on risk assets; thus Wednesday’s decline in crypto values appeared consistent with this trend.
This latest downturn places bitcoin on track for five consecutive weeks of losses—the worst streak since last year’s prolonged bear market.
The cryptocurrency now faces a significant challenge at these levels; previously holding support around $66,000 helped it rebound above $70,000 last week. Should this support level fail decisively now, traders may begin to focus on early February lows near $60,000 or even anticipate further declines ahead.