Bitcoin Price Drops Below $66K as Hawkish Fed Minutes Weigh on Crypto Market

Bitcoin (BTC) faced renewed selling pressure on Wednesday, sliding below the $66,000 level during U.S. afternoon trading and testing the lower boundary of its recent range. After briefly climbing to $68,500 overnight, the leading cryptocurrency reversed course and fell 2.5% over the past 24 hours, last trading near $66,200. The pullback puts bitcoin price action at a critical support zone that traders are watching closely.

The broader crypto market mirrored bitcoin’s decline, with major crypto stocks surrendering earlier gains. Coinbase (COIN), which had risen 3% earlier in the session, reversed into a 2% loss by the afternoon. MicroStrategy (MSTR), the largest corporate holder of bitcoin, also dropped about 3% as BTC weakened. The downturn highlights the strong correlation between bitcoin price movements and publicly traded crypto-related equities.

Traditional markets added to the pressure. U.S. stocks trimmed early advances after the release of the Federal Reserve’s January FOMC meeting minutes. While policymakers maintained their pause on rate cuts, several members suggested adopting “two-sided” guidance, signaling that further interest rate hikes remain possible if inflation persists. This more hawkish tone dampened risk appetite across financial markets.

At the same time, the U.S. dollar strengthened, with the Dollar Index (DXY) climbing to a two-week high. A stronger dollar typically weighs on risk assets such as cryptocurrencies, and Wednesday’s bitcoin sell-off aligned with that pattern.

If current losses hold, bitcoin is on track for its fifth consecutive weekly decline, marking its longest losing streak since the 2022 bear market. The $66,000 level now stands as a crucial support area after holding firm last week and fueling a rally above $70,000. A decisive break below this threshold could open the door to a retest of the $60,000 level or potentially deeper losses in the near term.