Crypto markets took a heavy hit overnight. Bitcoin dropped from $68,376 to near $65,000, briefly hitting a low of $65,300. Ethereum crashed from above $2,000 to $1,880 before recovering slightly to $1,907. Both assets remain under pressure.
Nonfarm Payrolls Blow Past Expectations
The US Bureau of Labor Statistics reported 130,000 new jobs in January, far exceeding the consensus estimate of 55,000 — nearly 2.4 times the forecast. The strong labor data reinforces the Fed's reluctance to cut rates soon, hitting risk assets hard. US equities sold off: Dow -1.34%, Nasdaq -2.03%, S&P 500 -1.57%. Major tech stocks fell — Apple -5%, Broadcom -3%, Amazon, Meta, Tesla each down over 2%. Crypto-linked stocks like Coinbase dropped 7%, Circle fell 2%.
Ethereum Dives Below $2,000, Leverage Liquidations Spike
ETH had been holding above $2,000 but was pierced down to $1,880 in a flash crash. The round number now acts as strong resistance. Notable: Machi Big Brother Huang Licheng — a well-known Taiwanese investor — had his high-leverage ETH longs on Hyperliquid liquidated, suffering a cumulative loss of $25 million. ETH is now down over 50% from its May 2025 peak near $5,000.
ETF Bleeding, Technicals Deteriorate
Institutional capital has been steadily exiting Bitcoin ETFs since November 2025, with cumulative net outflows reaching $5.7 billion — the longest continuous outflow streak since spot ETF inception. On technical charts, BTC's 14-day RSI sits at 45-48 (weakish); the 4-hour MACD has printed a death cross, signaling more downside risk. ETH's RSI is near 42, price below the 21-day SMA, and MACD histogram bars are expanding negatively — bearish momentum intact.
Support Levels to Watch: BTC $64K, ETH $1,875
If US equity futures fail to stabilize at today's open, BTC must hold the $64,000 level; ETH's key support is near $1,875 (Fibonacci retracement). Losing these could trigger deeper consolidation and another wave of leverage cleansing. JPMorgan recently argued the selling wave may be near exhaustion, with Bitcoin showing bottoming signs — but recovery hinges on equity stabilization and any shift in Fed rhetoric.