Bitcoin fell on Thursday, extending its recent decline after some hawkish signals from the Federal Reserve's January meeting minutes raised further uncertainty about the interest rate outlook.
Cryptocurrency prices also came under pressure from risk aversion amid escalating geopolitical tensions between the US and Iran and largely lagged gold, which benefited from safe-haven demand.
Bitcoin fell 1.3% to $66,963.8 by 9:06 AM (06:06 GMT).
Cryptocurrency markets also largely lagged the rally in global tech stocks, despite historically tracking the sector.
Bitcoin struggles after Fed minutes spark rate uncertainty
Bitcoin remained under pressure due to heightened uncertainty about the US interest rate outlook, with the Fed minutes providing no relief.
The minutes of the January Federal Reserve meeting showed policymakers increasingly divided over the long-term path of rates and inflation, with "several" members even suggesting that rate hikes might be warranted if persistent inflation persists.
Fed members expressed uncertainty about the impact of artificial intelligence on the economy, with opinions divided on whether the technology would harm or help growth.
Cryptocurrency markets were particularly spooked by the Fed's comments on rate hikes, given that higher rates are detrimental to purely speculative assets like Bitcoin. Traders shifted to the dollar after the Fed minutes were released.