Cryptocurrency values decline, with bitcoin dropping below $66,000 as Friday’s gains diminish.

As numerous other asset markets experience upward trends, investors currently seem to have shifted their focus away from cryptocurrency.

Investors are moving on from crypto (Vitaly Gariev/Unsplash)

Key points:

• The crypto rebound observed on Friday is sharply reversing by Wednesday, with bitcoin dropping back below $66,000.
• Declining hopes for a Fed rate cut are affecting the markets, although the crypto bear market began last year while the U.S. central bank was lowering rates.
• Concrete data, along with anecdotal insights, indicates that crypto investors have lost interest and have transitioned to various other rising markets.

After experiencing a decline throughout the week, bitcoin BTC$66,443.42 reached a low late last Thursday at $60,000 before a significant rally on Friday propelled the price nearly 20% higher to just below $72,000. However, that rebound is increasingly resembling the “dead cat” bounce.

During mid-morning trading in the U.S., bitcoin is again experiencing a sharp decline, trading just under $66,000 and down over 4% in the last 24 hours. Ether ETH$1,928.98 and solana SOL$79.72 have decreased by nearly 5.5%, while XRP XRP$1.3575 is down 3.5%.

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After an earlier increase, U.S. stocks have reverted to roughly unchanged for the day. Gold and silver have risen by 0.8% and 3.2%, respectively.

Earlier on Wednesday, the U.S. government announced job growth of 130,000 for January, nearly doubling economists’ predictions. The unemployment rate unexpectedly fell to 4.3%.

This has caused interest rate traders to quickly retract their expectations for imminent Federal Reserve rate cuts. They are now estimating only a 6% likelihood of a rate cut in March and a 23% chance for April, according to CME FedWatch. Before the report, the probabilities for a March cut were at 21%, and for April, they were at 52%.

The impact of rate cuts on the crypto bear market remains debatable. Notably, this pronounced downward movement began in 2025 as the Fed adjusted monetary policy during three consecutive meetings.

Diminishing interest

With numerous other assets globally in bullish trends while crypto continues to struggle, it seems that investor interest in cryptocurrency is waning.

Coinglass reported on Wednesday that bitcoin perpetual futures open interest has declined again, now standing 51% below its peak in October 2025, indicating a notable retreat in trader confidence and leverage.

“We’re witnessing an ‘exit-crypto’ trend as investors grow weary,” an analyst informed Bloomberg regarding South Korean investors moving away from crypto as the country’s Kospi stock market index reaches record highs.

Monthly trading volume on the Kospi rose by 221% year-over-year last month, the report noted, while trading on cryptocurrency exchanges has dropped by approximately 65%.

“This is a washout,” the analyst stated. “Retail is fatigued and migrating to the Kospi.”

Crypto stocks sharply lower across the board

No positive movement is observed in the entire crypto-related stock sector. Robinhood (HOOD) has declined by 12.5% after disclosing a significant drop in crypto trading revenue for the fourth quarter. This has negatively impacted its peer Coinbase (COIN), which is down 7% ahead of its earnings report set for Thursday evening.

Leading bitcoin treasury company Strategy (MSTR) is down 4.5%, and ether treasury major Bitmine Immersion (BMNR) has decreased by 3.8%.

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