Bitcoin slid to the $65,000 level on Wednesday night, losing nearly $2,400 as a trifecta of negative news hit risk assets. U.S. equities, gold, and silver all declined alongside the crypto market.
Jobless Claims and Housing Sales Miss
Initial jobless claims came in higher than forecast, while continuing claims also rose, signaling a softening labor market. On the same day, U.S. January home sales plunged 8.4%, the worst reading in nearly four years. The twin data points stoked fresh recession fears.
Government Shutdown Threat and Asian Holiday Caution
The U.S. government faces another potential shutdown next week, disrupting market liquidity and delaying economic releases. Meanwhile, Asian financial institutions are trimming exposure ahead of the Lunar New Year holiday, adding another layer of selling pressure.
Buyers Outmatched by Bearish Futures
On-chain data shows some accumulation at current levels, but futures markets remain firmly dominated by short positions. Liquidity has dried up, making it difficult for spot buyers to reverse the trend. Analysts note that BTC needs to turn the $76,000 resistance into support before challenging $80,000—a scenario that looks unlikely in the near term.
The market now awaits U.S. CPI data due tonight. A benign reading could trigger a modest bounce on Friday, but broader macro weakness and weekend risk-off positioning may cap gains. Any escalation in Middle East tensions over the weekend would add further downside risk for crypto.