Bitcoin gave up most of Wednesday's surge during early US trading on Friday, sliding back below $66,000. The largest cryptocurrency dropped 3% from around $68,000 to $65,600 in a matter of hours, mirroring a broad risk-off move across markets. The CoinDesk 20 Index fell 2.3% over the past 24 hours, with ether, XRP, and solana all posting similar losses.
Crypto-linked stocks retreat, miners hit hardest
Shares of major crypto-exposed companies declined in tandem. Strategy (MSTR), the largest corporate bitcoin holder, slipped 3%, while Coinbase (COIN) fell more than 2%. Stablecoin issuer Circle (CRCL) snapped its recent rebound — which had seen the stock surge nearly 50% in just a couple of sessions — dropping almost 5%. Miner stocks, increasingly tied to AI infrastructure, fared even worse: IREN, Cipher Mining, Core Scientific, and TeraWulf each lost 6% to 8%.
The broader US equity market also stumbled, with the Nasdaq down 0.8% and the S&P 500 off by 0.6%.
Hot PPI reignites inflation fear, Fed hold priced at 96%
A hotter-than-expected January Producer Price Index rattled investors hoping for continued disinflation. Core PPI rose 3.6% year-over-year, well above the 3.0% consensus and up from a revised 3.3% in December. Markets now assign a 96% probability that the Federal Reserve will hold rates steady at its March 18 meeting.
Credit spreads widest in four months; PE giants tumble
Stress in credit markets resurfaced, with credit spreads hitting their widest level in four months. Private equity firms KKR, Ares, and Apollo Global Management all plunged 6%-7% to fresh session lows.
Geopolitical risk: US evacuates embassy staff from Israel, Iran strike odds rise
The US began evacuating embassy personnel from Israel on Friday, sending prediction-market odds of a US strike against Iran sharply higher, further souring risk appetite.
Safe havens rally: gold above $5,230, silver back above $92, 10-year yield below 4%
Investors piled into havens. Gold rose 1% to $5,230 an ounce, while silver surged 4% to trade back above $92. The US 10-year Treasury yield slipped below 4% for the first time since November 2024. Crude oil jumped 2.3% to above $67 a barrel.
“Bitcoin’s upside looks capped, and prices will likely remain rangebound given the risk-off mood,” said Paul Howard, director at trading firm Wincent. Following the February options expiry, traders are positioned for BTC to stay below $72,000-$74,000 with support at around $54,000 through March, he added.