Bitcoin Slips Below $66K Amid Hawkish Federal Reserve Minutes, Extending Weekly Losses
By José Oramas | February 19, 2026
Bitcoin has experienced a notable decline, slipping below the key $66,000 mark following the release of hawkish minutes from the Federal Reserve’s January meeting. This dip marks the cryptocurrency’s longest weekly losing streak since the challenging bear market of 2022, underscoring mounting investor caution amid shifts in monetary policy and risk sentiment.
Federal Reserve Minutes Spark Market Jitters
The Federal Reserve’s minutes revealed that while policymakers generally favored pausing rate cuts, several members expressed openness to adopting “two-sided” guidance. This approach could leave room for future interest rate hikes if inflationary pressures persist, signaling a less dovish stance than many market participants had anticipated. Consequently, the US dollar strengthened, with the dollar index (DXY) climbing to its highest level in nearly two weeks.
A firmer US dollar often exerts downward pressure on risk assets, including cryptocurrencies. Following the Fed minutes, Bitcoin’s price mirrored this trend, declining during late trading hours and trimming earlier gains observed in the day.
Bitcoin’s Price Movement and Technical Outlook
Bitcoin (BTC) fell below $66,000 (approximately AUD 100,980) on Wednesday, closing the US trading session near its daily lows. The cryptocurrency was last recorded around $66,200 (AUD 101,000), down roughly 2.5% over a 24-hour period after briefly trading near $68,500 (AUD 104,805) the night before.
This downward movement sets Bitcoin on track for a fifth consecutive weekly loss, the longest streak seen since the 2022 bear market. Traders are closely monitoring the $66,000 support level, which had previously acted as a floor that propelled Bitcoin above $70,000 (AUD 107,100). Should Bitcoin decisively break below this level, market focus may shift toward the early February lows near $60,000 (AUD 91,800).
Elevated Market Fear Reflects Risk-Averse Mood
Investor sentiment remains subdued, evidenced by the Crypto Fear and Greed Index plunging to an all-time low of 5 on February 12. This extreme risk aversion reflects broad investor concerns amid macroeconomic uncertainty and tightening financial conditions.
The cryptocurrency market’s weakness also influenced related equities. Shares of Coinbase, a major crypto exchange, reversed earlier gains, dropping from about 3% higher in the morning to approximately 2% lower by afternoon trading. Similarly, Strategy, known as the largest corporate holder of Bitcoin, saw its stock fall nearly 3%.
Expert Warnings on Bitcoin’s Speculative Behavior
Renowned investor Michael Burry weighed in on the situation via a Substack post, cautioning that further Bitcoin declines could lead to substantial losses for publicly listed companies with crypto exposure. He also warned of potential spillover effects impacting broader markets.
Burry criticized Bitcoin’s recent performance, arguing that it has behaved more like a speculative asset than a traditional hedge. He contrasted this with gold and silver, which have surged to record highs amid ongoing geopolitical tensions and currency concerns, thereby highlighting Bitcoin’s divergence from safe-haven qualities.
Broader Crypto Market Context
The current downturn in Bitcoin and risk assets comes as the crypto market digests tightening signals from major global central banks. The rise of the US dollar and uncertainty over future rate moves have contributed to the volatile environment.
Notably, crypto equities and assets like Coinbase and Strategy experienced sharp reversals, mirroring the negative sentiment triggered by the Fed’s minutes. This dynamic underscores the interconnectedness of the crypto and traditional financial markets, particularly amid monetary tightening cycles.
As Bitcoin navigates this challenging period, market participants remain vigilant, watching key support levels and awaiting further clarity on central bank policies. The coming weeks will likely be critical in determining whether Bitcoin can rebound or if more pronounced weakness lies ahead.
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About the Author:
José Oramas is a journalist and translator specializing in blockchain and cryptocurrency coverage.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Readers are advised to conduct their own research before making investment decisions.
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