On Wednesday, Bitcoin’s price dropped to $66,000, experiencing a decline of more than 3.5% within a single day. This movement coincided with a surge in short-term volatility on Binance, reaching levels unseen since 2022, as reported by CryptoQuant.
The dip in Bitcoin’s value followed unexpectedly strong US employment figures that reduced expectations for significant Federal Reserve interest rate cuts. This development exerted downward pressure on speculative investments across various markets.
According to CryptoQuant’s data, the seven-day annualized volatility on Binance climbed to 1.51—the highest point recorded in nearly three years. The company highlighted that such elevated volatility has historically appeared during major market overhauls and widespread deleveraging phases within the cryptocurrency sector.
Nevertheless, metrics tracking longer time horizons imply that this spike in turbulence might be temporary. The 30-day annualized volatility currently stands at 0.81, while the figure for 90 days is even lower at 0.56. This decreasing trend across different durations suggests recent price fluctuations are concentrated in brief episodes rather than indicating a fundamental change in market dynamics.
Other cryptocurrencies also faced declines: Ether fell to $1,925; Solana decreased to approximately $80; and XRP dropped to $1.35. Overall crypto market capitalization contracted by about 3.8% over the last day according to CoinGecko statistics, whereas major US stock indices like Nasdaq remained mostly steady.