Crypto Takes a Hit: Investors Pull Back

Crypto Struggles Continue

Bitcoin (BTC) is experiencing a tough period. After a significant jump on Friday, it's now losing value again. On Wednesday, it dropped over 4% in just 24 hours, trading below $66,000. Other cryptocurrencies like Ether (ETH) and Solana (SOL) are also down, with losses around 5.5%. Even XRP isn't doing well, down by 3.5%.

U.S. Stocks and Precious Metals

Meanwhile, U.S. stocks are flat, and precious metals like gold and silver are up slightly. The U.S. government reported better-than-expected job growth in January, with 130,000 new jobs added. This unexpected good news has changed expectations for interest rate cuts. Before the report, people thought there was a good chance of a rate cut in March or April. Now, those chances have dropped significantly.

Crypto's Struggles Continue

Crypto has been struggling since late 2025, even as other assets are doing well. Investors seem to be losing interest. Bitcoin perpetual futures open interest has dropped 51% from its peak in October 2025. This shows that traders are less confident and using less leverage.

Shifts in South Korea

In South Korea, investors are moving away from crypto and into the stock market. The Kospi stock market index is hitting record highs, while crypto trading volume is down about 65%. One analyst called this a "washout," saying that retail investors are exhausted and leaving crypto for better opportunities.

Crypto-Related Stocks Take a Hit

Crypto-related stocks are also taking a hit. Robinhood (HOOD) is down 12.5% after reporting a drop in crypto trading revenue. Coinbase (COIN) is down 7% ahead of its earnings report. Other companies like MicroStrategy (MSTR), Bitmine Immersion (BMNR), Circle Financial (CRCL), Galaxy Digital (GLXY), and Bullish (BLSH) are also seeing losses.