After hesitating early on Wednesday, Bitcoin reversed during the afternoon in the United States and slipped to a session low below $66,000, putting pressure again on the lower end of its recent range.
After trading $68,500 overnight, BTC is down 2.5% in the past 24 hours and last traded at $66,200.
Crypto stocks, which started the day on a stronger footing, followed suit, paring gains or beginning broad-based declines. Most notable was Coinbase (COIN), which turned its 3% morning advance into a 2% decline in the afternoon. Strategy (MSTR), the largest holding company of Bitcoin, was down around 3% as the underlying asset weakened.
After a quick start to the session, US stocks gave up a large part of their gains shortly before the close of trading. The surprisingly hawkish minutes from the January meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve didn’t help. As expected, most members of the central bank agreed with the decision to suspend rate cuts, but — to everyone’s surprise — several suggested that the Fed favored a “bilateral” stance whereby the bank could choose to raise rates if inflation continues to remain high.
Already higher for the day, the US dollar strengthened further, with the Dollar Index (DXY) – which measures the greenback against a basket of major foreign currencies – climbing to its highest level in almost two weeks. A stronger dollar often weighs on risk assets, and Wednesday’s crypto demise appears to fit that pattern.
With today’s decline, Bitcoin now faces a fifth straight week of losses, its worst streak since the long bear market of 2022.
It also faces a key test at current levels. The $66,000 area served as support last week and helped fuel a rebound above $70,000. If this bottom gives way decisively, traders will likely start eyeing the early February lows at $60,000 or further decline.
