Cryptocurrency markets extended their pullback even as other asset classes held firm, reinforcing the sense that investor capital is rotating elsewhere.

Bitcoin (BTC) had mounted a dramatic rebound late last week, climbing from a Thursday trough near $60,000 to almost $72,000 on Friday — a roughly 20% surge. That rally now appears short-lived. By mid-morning U.S. trading, Bitcoin was down more than 4% over the past 24 hours, slipping back below $66,000.

The weakness spread across major tokens. Ether (ETH) and Solana (SOL) each declined around 5.5%, while XRP (XRP) lost about 3.5%, signaling continued pressure across the broader digital asset market.

Meanwhile, traditional markets were comparatively stable. U.S. equities, after trading higher earlier in the day, drifted back toward unchanged levels. Precious metals continued to advance, with gold rising 0.8% and silver up 3.2%.

Stronger-than-expected U.S. labor data added to the cautious tone. January job growth totaled 130,000 — nearly double economists’ forecasts — while the unemployment rate unexpectedly fell to 4.3%. The data prompted traders to reassess the timing of potential Federal Reserve rate cuts.

According to CME FedWatch, markets now price in just a 6% chance of a March rate cut and a 23% probability of an April move, down sharply from 21% and 52%, respectively, prior to the jobs report.

Still, it is unclear whether additional easing would revive crypto sentiment. The current downtrend began in 2025 despite the Federal Reserve cutting rates at three consecutive meetings.

Momentum Fades in Crypto Markets

Signs of declining participation are becoming more evident.

Data from Coinglass show Bitcoin perpetual futures open interest has fallen to 51% below its October 2025 peak, pointing to a significant reduction in leveraged exposure and trader conviction.

The rotation appears particularly pronounced in South Korea. As the KOSPI climbs to record highs, retail investors are increasingly shifting toward equities. Monthly trading volume on the Kospi jumped 221% year over year, while crypto exchange volumes dropped roughly 65% during the same period.

Market observers have described the trend as an “exit-crypto” phase, with retail investors appearing fatigued and reallocating to stronger-performing stock markets.

Crypto-Related Stocks Decline

The selling pressure extended to publicly traded crypto-focused firms.

Shares of Robinhood fell 12.5% after the company reported a sharp drop in fourth-quarter crypto trading revenue. The decline also weighed on Coinbase, which slipped 7% ahead of its earnings release.

Bitcoin treasury firm Strategy dropped 4.5%, while ether-focused treasury company Bitmine Immersion declined 3.8%.

Elsewhere in the sector, Circle lost 4.7%, Galaxy Digital fell 3.2%, and Bullish slid 5.3%, underscoring broad weakness across digital asset equities.