On February 11, 2026, Bitcoin dropped below $66,000 for the third consecutive session, reversing a recent rally amid stronger-than-expected U.S. jobs data that diminished hopes for Federal Reserve rate cuts. Other cryptocurrencies like Ethereum, XRP, and Dogecoin also fell, signaling waning investor interest in the sector. While some on-chain indicators show accumulation by larger holders, analysts warn of potential further downside.
The cryptocurrency market experienced a sharp downturn on Wednesday, February 11, 2026, with Bitcoin trading just below $66,000 after a more than 4% decline over the past 24 hours, according to CoinDesk. This marked the third straight session of losses, pushing the price below the 200-week exponential moving average at $68,000 for the first time since the recent rally began, as reported by Finance Magnates. The drop erased much of the gains from a Friday surge that had lifted Bitcoin from a late Thursday low of $60,000 to nearly $72,000.
The immediate catalyst was the U.S. government's January employment report, which showed job growth of 130,000—nearly double economist forecasts—and an unexpected dip in the unemployment rate to 4.3%. This data prompted traders to slash expectations for Federal Reserve rate cuts, with probabilities falling to 6% for March (from 21%) and 23% for April (from 52%), per CME FedWatch Tool. Notably, the crypto bear market had already begun in 2025, even as the Fed implemented three consecutive rate reductions.
Ethereum fell about 5.5% to $1,958, Solana to $79.99, XRP by 3.5% to $1.38, and Dogecoin by 3% to $0.09 in its fifth consecutive decline. Bitcoin perpetual futures open interest dropped 51% from its October 2025 peak, indicating reduced trader conviction, Coinglass data showed. In South Korea, crypto trading volumes on exchanges fell 65% year-over-year last month, while Kospi stock market volumes surged 221%, highlighting an 'exit-crypto' movement. One analyst told Bloomberg, “We’re seeing an ‘exit-crypto’ movement as investors grow tired,” adding, “This is a washout. Retail is exhausted and fleeing to the Kospi.”
Crypto-related stocks also tumbled: Robinhood down 12.5% after reporting lower crypto trading revenue, Coinbase off 7%, and MicroStrategy down 4.5%. James Harris, CEO of Tesseract Group, noted, “The recent rebound looks more spot led than paper led,” with two days of ETF inflows insufficient for a trend reversal. He cautioned that renewed outflows or a break below the mid-$60,000s could signal a bear market bounce. Paul Howard of Wincent pointed to a shift toward spot trading, describing it as the busiest month in history for over-the-counter spot desks, though stablecoin liquidity has weakened since late 2025.
Analysts like Jeff Anderson of STS Digital identified key levels, expecting larger moves due to decreased liquidity post-options blowout, with support at $62,000. Despite price weakness, Harris highlighted exchange outflows and accumulation by larger holders as signs of inventory shifting to stronger hands, though sustained ETF demand or stabilized on-chain liquidity is needed for recovery.
