Bitcoin Briefly Drops Below $67,000 as Stock Divergence Rises

Core Insights - Bitcoin's correlation with stocks is diverging, with Bitcoin declining while US equities are rallying after a strong jobs report, indicating that investor confidence in digital assets remains low [1] - Bitcoin fell as much as 3.3% to $66,354, while Ether dropped 3.8% to an intraday low of $1,931 [1] - Bitcoin recorded its third consecutive daily bearish candle, with only slightly more than half of the 20% rebound from Friday's lows remaining [2] Market Analysis - The recent low of $60,000 for Bitcoin, created on high volumes, is suspected to be a capitulation type low, but a clear catalyst for a sustained rebound is still lacking [3] - The January jobs data suggests that the Federal Reserve may keep interest rates on hold, with traders pushing the timeline for the next rate cut to July, which historically has been seen as a positive catalyst for Bitcoin [4] - The decline in Bitcoin's price to $60,000 without corresponding volume spikes indicates thin order books and a lack of buyer conviction, creating vulnerability to further downside on modest selling pressure [5]