Bitcoin slips beneath $66,000 as the broader crypto selloff deepens and Friday’s bounce fades.

Cryptocurrencies are back on the defensive even as other asset classes remain in rally mode, signaling that investor capital may be rotating away from digital assets.

Bitcoin (BTC) had staged a dramatic rebound late last week, bouncing from a Thursday low near $60,000 to almost $72,000 on Friday — a surge of roughly 20%. That recovery now appears short-lived. By mid-morning U.S. trading, Bitcoin was down more than 4% over the past 24 hours, slipping back below $66,000.

The selling extended across major tokens. Ether (ETH) and Solana (SOL) each fell around 5.5%, while XRP (XRP) declined roughly 3.5%, reflecting broad-based weakness in the sector.

In contrast, traditional markets were comparatively steady. U.S. stocks, after opening higher, eased back to roughly unchanged on the day. Precious metals continued to advance, with gold up 0.8% and silver rising 3.2%.

Earlier Wednesday, U.S. economic data showed January job growth of 130,000 — nearly double consensus forecasts — while the unemployment rate unexpectedly dipped to 4.3%. The stronger labor report prompted a sharp reset in rate-cut expectations.

According to CME FedWatch data, traders now see just a 6% probability of a March rate cut from the Federal Reserve and a 23% chance of an April move. Before the jobs data, those odds stood at 21% and 52%, respectively.

Even so, it remains unclear whether easier monetary policy would revive crypto sentiment. The latest downturn began in 2025 despite the Federal Reserve delivering rate cuts at three consecutive meetings.

Investor Interest Shows Signs of Cooling

With equities in several global markets pushing to record levels while crypto struggles, indicators suggest participation in digital assets is fading.

Data from Coinglass show that Bitcoin perpetual futures open interest has fallen to 51% below its October 2025 peak, pointing to a notable decline in leveraged positioning and trader conviction.

The rotation appears especially pronounced in South Korea. As the KOSPI hits record highs, retail investors have been shifting toward domestic equities. Monthly trading volume on the Kospi surged 221% year over year, while activity on crypto exchanges dropped roughly 65% over the same period.

One analyst described the move as an “exit-crypto” trend, adding that retail traders appear fatigued and increasingly drawn to the stock market’s strength.

Crypto-Related Stocks Slide

The weakness spilled over into crypto-linked equities, with no major names trading in positive territory.

Shares of Robinhood fell 12.5% after the company disclosed a steep drop in fourth-quarter crypto trading revenue. The decline pressured peer Coinbase, which slipped 7% ahead of its earnings report due Thursday evening.

Bitcoin treasury firm Strategy declined 4.5%, while ether-focused treasury company Bitmine Immersion dropped 3.8%.

Elsewhere, Circle lost 4.7%, Galaxy Digital fell 3.2%, and Bullish slid 5.3%, underscoring broad pressure across the digital asset ecosystem.