Crypto Majors Plunge 4-5% as BTC Hits $66.7K Amid USD Strength and Fed Warnings

Bitcoin tumbled 1.7% to $66,700 on February 19, 2026, dragging Ether, XRP, and Solana down 4-5% in a stark divergence from rising Asian stocks. Despite gains in indices like Japan's Nikkei up 0.85% and South Korea's Kospi surging 3%, crypto faced headwinds from a robust U.S. dollar fueled by Federal Reserve minutes signaling no rate cuts soon. This volatility sparked $218 million in liquidations, creating tense moments for day-traders watching key supports.

The slide reflects broader pressures on risk assets. Ether slipped to $1,965, XRP nearly 5%, and Solana close to 4%, with BNB and Dogecoin also weakening, as reported by CoinDesk. This broad decline persisted even as U.S. tech rebounded on Nvidia's AI chip deal with Meta, underscoring crypto's sensitivity to macro shifts.04 A firmer dollar, bolstered by Fed openness to hikes if inflation lingers, tightened liquidity, while gold held firm as a haven, challenging Bitcoin's narrative.0 Market data from Bitget shows the total crypto cap down nearly 3% to $2.35 trillion, with altcoins lagging in low-volume trading. Binance Square updates pegged BTC between $65,870 and $68,348, closing down 2% at $65,937, amid Fed rate uncertainty and central banks favoring gold. Liquidations amplified the drop, echoing recent patterns where leverage unwinds accelerate selloffs, per Coinglass trends in similar events.36 Analysts like B2PRIME's Alex Tsepaev highlight gold's hedge role amid geopolitics, but note Bitcoin's potential for quicker rebounds via ETF flows and speculation. Day-traders eye BTC support at $65,000, ETH at $1,950, with altcoins testing multi-week lows. Thin holiday liquidity in Asia exacerbated swings, decoupling crypto from equity optimism.

This dip tests crucial supports, offering prime entry points for dip buyers on buythedip strategies. With $218 million liquidated mostly longs, volatility spikes create scalping opportunities for day-traders agile in low-vol environments. However, persistent USD strength risks further downside, potentially pushing BTC toward $65k and alts deeper, impacting leveraged positions across exchanges.

As Fed signals loom larger, crypto's volatility underscores the need for tight risk management. Dip buyers could find rewards if supports hold and ETF inflows resume, but watch USD index and gold for clues. The market's resilience may shine through, rewarding patient traders in this choppy sea.

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