Bitcoin Crashes to $66K as Fed Hawks Circle

$2,500 vanished in a matter of hours. Bitcoin, which traded at $68,500 overnight, plummeted below $66,000 Wednesday afternoon, sending crypto investors scrambling for the exits.

Five Weeks of Pain

Bitcoin is now staring at its fifth consecutive weekly decline—the longest losing streak since the brutal 2022 bear market. But this isn't just about numbers on a screen. The $66,000 level represents something far more critical: the last line of defense.

This price zone held firm just last week, providing the springboard for a rally above $70,000. It was the floor that crypto bulls could count on. Now that foundation is cracking, and if it gives way completely, traders are already eyeing the $60,000 lows from early February—or worse.

Coinbase shares tell the story perfectly: up 3% in morning trading, down 2% by afternoon. MicroStrategy, the corporate world's biggest bitcoin believer, shed roughly 3% as its flagship holding weakened.

The Fed's Surprise Punch

The catalyst wasn't some crypto-specific drama—it was the Federal Reserve. Wednesday's FOMC minutes revealed something markets hadn't fully priced in: several Fed officials suggested the central bank should consider "two-sided" guidance, meaning rate hikes could be back on the table if inflation stays sticky.

That hawkish twist sent the dollar soaring to two-week highs. When the greenback flexes its muscles, risk assets typically wilt—and bitcoin proved no exception. The pattern is becoming painfully familiar: strong dollar equals crypto weakness.

Beyond Bitcoin: A Broader Reckoning

This wasn't just crypto's problem. U.S. stocks, which had rallied earlier in the session, gave back most of their gains after the Fed minutes hit. The message is clear: when central bankers start talking tough, investors flee to safety.

The question now is whether bitcoin can hold its ground. The $66,000 support has been tested repeatedly, and each test weakens it further. Break below decisively, and the next stop could be $60,000—or a fresh leg lower that nobody wants to contemplate.