Even as equities and commodities push higher, cryptocurrencies are struggling to regain momentum, suggesting investors may be shifting capital away from digital assets for now.
After sliding throughout the week, Bitcoin (BTC) found a floor late Thursday near $60,000. A powerful rebound on Friday drove the price nearly 20% higher to just under $72,000. That surge is increasingly looking like a short-lived “dead cat bounce.”
By mid-morning U.S. trading, Bitcoin was back under pressure, falling more than 4% over the past 24 hours to trade just below $66,000. The weakness was broad-based across major tokens. Ether (ETH) and Solana (SOL) were each down roughly 5.5%, while XRP (XRP) declined about 3.5%.
Traditional markets were steadier. U.S. stocks, which had traded higher earlier in the session, drifted back toward flat. Gold rose 0.8% and silver gained 3.2%, reflecting continued strength in precious metals.
Earlier Wednesday, fresh U.S. labor data showed January job growth of 130,000 — nearly double economist forecasts — while the unemployment rate unexpectedly fell to 4.3%. The stronger-than-expected report prompted traders to reassess the outlook for Federal Reserve policy.
According to CME FedWatch data, markets are now assigning just a 6% probability to a March rate cut and a 23% chance to an April easing. Prior to the jobs release, the implied odds stood at 21% for March and 52% for April.
Whether additional rate cuts would meaningfully lift crypto remains an open question. The latest downturn began in 2025 despite the Federal Reserve delivering rate reductions at three consecutive meetings.
Signs of Fading Crypto Interest
With many global equity markets in bull territory while crypto continues to falter, indicators suggest enthusiasm for digital assets may be waning.
Data from Coinglass show that Bitcoin perpetual futures open interest has fallen to 51% below its October 2025 peak, highlighting a sharp pullback in leveraged positioning and trader conviction.
The shift appears particularly visible in South Korea, where the KOSPI has climbed to record highs. As equity participation rises, crypto trading activity has dropped sharply. Monthly Kospi trading volume jumped 221% year over year last month, while crypto exchange volumes declined about 65% over the same period.
One analyst described the trend as a broad “exit-crypto” move, with retail investors rotating into domestic equities. “This is a washout,” the analyst said. “Retail is exhausted and fleeing to the Kospi.”
Crypto-Linked Stocks Under Pressure
The weakness extended across publicly traded crypto-related companies.
Shares of Robinhood sank 12.5% after the firm reported a steep drop in fourth-quarter crypto trading revenue. The decline weighed on peer Coinbase, which fell 7% ahead of its earnings release scheduled for Thursday evening.
Bitcoin treasury firm Strategy lost 4.5%, while ether-focused treasury player Bitmine Immersion dropped 3.8%.
Elsewhere in the sector, Circle declined 4.7%, Galaxy Digital fell 3.2%, and Bullish slid 5.3%, underscoring broad-based pressure across digital asset equities.
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