Bitcoin Pulls Back to $66,000 as Markets Stay Focused on the Fed’s Next Decision
In this context, positive inflation data could support a more moderate stance from the Federal Reserve (Fed) on interest rates.
Quick overview
- The cryptocurrency market is experiencing mild declines, with Bitcoin up 0.9% at $66,044 after a recent pullback from $70,000.
- Ethereum is down 1.5% at $1,904, while other altcoins like Solana and Ripple are also following a downward trend.
- Recent U.S. employment data shows economic resilience, impacting market expectations for interest rate cuts by the Federal Reserve.
- Despite current market fragility, Binance's VP emphasizes Bitcoin's significant long-term growth potential and the natural occurrence of market downturns.
The cryptocurrency market is posting mild, broad-based declines. Bitcoin (BTC) is up 0.9% at $66,044, marking a pullback after having reached the $70,000 level during Tuesday’s session.
Meanwhile, Ethereum (ETH) is down 1.5% at $1,904. Altcoins are following the same trend: Solana (SOL) is down 2.3%, while Ripple (XRP) is slipping 0.3%.
Employment data boosts expectations of greater Fed flexibility
Following Bitcoin’s sharp downturn — its value fell nearly 40% in just eight months — new U.S. employment data were released, showing stability in the labor market. Payroll growth in the United States accelerated in January, and the unemployment rate fell to 4.3%, reinforcing the picture of economic resilience.
Markets scaled back their bets on interest rate cuts, although they still expect a first 25-basis-point reduction in June, according to CME Group’s FedWatch tool.
Attention is now shifting to the U.S. Consumer Price Index (CPI) report, scheduled for release on Friday.
In this context, positive inflation data could support a more moderate stance from the Federal Reserve (Fed) on interest rates, at least until June, following three consecutive rate cuts. While Bitcoin typically benefits from lower interest rates — which tend to boost risk assets — its current fragility is largely driven by reduced liquidity, institutional weakness, and fading speculative interest.
At the same time, a forecast by Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, added to investor चिंता, after he projected that Bitcoin could fall toward $50,000 in the coming months. If that scenario materializes, Ethereum could also decline to around $1,400.
Binance rules out a Bitcoin catastrophe
“To put recent market movements into perspective, it is worth reflecting on Bitcoin’s remarkable growth over the past six years. On February 6, 2020, Bitcoin was trading at around $9,600. On February 6, 2026, it was trading near $65,000. This represents an almost sevenfold increase in value. By comparison, the S&P 500 grew by roughly two times over the same six-year period, highlighting Bitcoin’s unique potential for exceptional returns despite its volatility,” said Guilherme Nazar, Binance’s Regional Vice President for the Americas.
In that sense, he stressed that market downturns are “a natural and expected part of the crypto cycle.” Nazar also highlighted growing and sustained institutional participation, robust liquidity supported by stablecoins, and a macroeconomic environment in which liquidity conditions have the potential to improve over time.
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