Bitcoin experienced a volatile week, hitting a low of $60,000 late last Thursday before staging a significant rally that brought its price close to $72,000 on Friday, marking an almost 20% increase. However, the momentum appears to have fizzled, as Bitcoin is now trading just below $66,000, reflecting a more than 4% decline over the last 24 hours. Other cryptocurrencies, including Ether and Solana, saw reduced values, with declines of approximately 5.5%, while XRP dropped by 3.5%.
In conjunction with the fluctuations in the crypto market, U.S. stocks began the day higher but have returned to flat territory. Meanwhile, precious metals like gold and silver have shown gains, increasing by 0.8% and 3.2%, respectively.
The U.S. government recently reported promising job growth figures for January, with 130,000 jobs added, almost double what economists had predicted. Additionally, the unemployment rate unexpectedly decreased to 4.3%. These figures have influenced expectations regarding Federal Reserve interest rate cuts, with traders now pricing in only a 6% likelihood of a move in March and a 23% probability for April. Prior to these job figures, the chances of a March cut stood at 21%, and April at 52%.
Although it remains uncertain whether potential rate cuts could rejuvenate the crypto market, it’s notable that the current downturn began in 2025, coinciding with the Fed’s easing of monetary policy over three consecutive meetings.
As traditional investments gain traction, interest in cryptocurrencies appears to be diminishing. Data from Coinglass indicates that open interest in bitcoin perpetual futures has dropped significantly, standing 51% below its October 2025 peak. This decline signals a retreat among traders, with one analyst describing a notable “exit-crypto” movement as investors shift their focus. Of particular note is the growing popularity of the South Korean stock market, which has reached record highs, with monthly trading volume on the Kospi up 221% year-over-year, while crypto exchange trading has plummeted by around 65%.
This sentiment has also impacted the broader crypto-related stock sector. Robinhood has experienced a 12.5% decline following a substantial drop in its crypto trading revenue, negatively influencing peer company Coinbase, which is down 7% ahead of its upcoming earnings report. Additional notable losses include Strategy (MSTR) down 4.5%, Bitmine Immersion (BMNR) off 3.8%, Circle Financial (CRCL) declining by 4.7%, Galaxy Digital (GLXY) falling by 3.2%, and Bullish (BLSH) down 5.3%. The overall lack of positive movement in the crypto market and among related stocks suggests a growing exhaustion among retail investors.
