Bitcoin’s Dismal Plunge: U.S. Stocks Join the Sinking Ship as Rate Hike Looms

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Markets

What to know:

  • Bitcoin, that most capricious of currencies, has unceremoniously fallen back to $66,000 on this fine Wednesday afternoon, thus testing the limits of its recent trading range as one might test a friend’s patience.
  • In an astonishing turn of events, crypto-related stocks, which began the day with such promise, have reversed their gains more dramatically than a Regency romance plot twist, with Coinbase transforming a 3% morning rise into a lamentable 2% decline. Strategy, the supposed titan of corporate bitcoin ownership, has also taken a tumble, down about 3%-truly, a sight most distressing!
  • Adding to the day’s delightful turmoil, the Federal Reserve’s unexpectedly hawkish minutes have resulted in a robust U.S. dollar, consequently applying pressure on those risky assets, much like a demanding parent applying pressure on their hopeful progeny.

After a morning of much aimless chopping, bitcoin decided to roll over, much like a discontented cat, during the U.S. afternoon, nosediving to session lows beneath the illustrious mark of $66,000. This descent subjected it once again to the lower realms of its recent trading range-a veritable tragedy of errors!

Once basking in the fleeting glory of $68,500 overnight, our dear BTC has since plummeted by 2.5% over the last twenty-four hours and is presently hovering at the disheartening figure of $66,200.

With great enthusiasm at the start of the session, U.S. stocks have sadly relinquished much of their initial gaiety just before the curtain falls on trading for the day. The cause? Those remarkably hawkish minutes from the January Federal Open Market Committee meeting, which predictably endorsed a pause on rate cuts, but shockingly suggested the possibility of rate hikes should inflation stubbornly refuse to budge. How very bold!

As if to add insult to injury, the U.S. dollar, already riding high on the day, has gained even more fortitude, with the dollar index (DXY)-that esteemed measure of the greenback against a host of foreign currencies-ascending to heights not seen in nearly a fortnight. One must wonder if today’s crypto misfortunes are mere coincidences or part of a grander design!

With this latest decline, bitcoin now faces the rather grim prospect of five consecutive weeks of losses, a streak reminiscent of the darkest days of the prolonged bear market of 2022.

Moreover, it stands at a crucial juncture-much like a heroine at a crossroads in a novel. The $66,000 region, which previously offered steadfast support, aided in rekindling hope above $70,000. Should this bastion crumble decisively, traders may soon find themselves gazing wistfully at the ominous early February lows of $60,000-or perhaps even bracing for a new chapter altogether.

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2026-02-18 23:46