Bitcoin Crashes to $66,000 as Jobs Data Kills March Rate Cut Hopes


$BTC plunged below $66,000 on Wednesday after January employment figures crushed Federal Reserve rate cut expectations for the coming months. The #cryptocurrency fell more than 4% over 24 hours as traders abandoned near-term monetary easing bets following stronger-than-expected labor market data.


U.S. employers added 130,000 jobs in January, nearly double the 70,000 economist forecast, according to the Department of Labor. Unemployment dropped to 4.3% versus expectations of 4.4%, eliminating pressure on the Fed to stimulate economic activity through lower borrowing costs.


CME FedWatch data showed March rate cut probability collapsed to just 6% from 21% before the report. April easing chances fell to 23% from 52%, marking a dramatic reversal in trader expectations over a single data release.


$ETH declined 5.5% while $SOL dropped similar amounts as altcoins amplified the downturn. $XRP fell 3.5% during the same period as risk asset selling accelerated across cryptocurrency markets.


Friday's rally had lifted $BTC nearly 20% from Thursday's $60,000 bottom to approach $72,000 over the weekend. The recovery proved short-lived as the jobs report triggered renewed selling pressure, with analysts characterizing the bounce as a failed technical pattern.


#Bitcoin perpetual futures open interest collapsed 51% below October 2025 peaks, according to market monitoring data. The decline signals retreating trader conviction and reduced leverage deployment across #derivative markets as participants exit positions.


David Hernandez from 21Shares called the employment data a #short-term headwind for #risk assets. The crypto investment strategist wrote that the cheaper money catalysts needed for sustained recovery got pushed substantially further into the future.

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February 12, 2026 at 12:52 AM