Crypto markets stumbled early Friday as geopolitical risks resurfaced and traders positioned ahead of critical U.S. inflation data. Former President Donald Trump’s renewed tariff threats against Canada and the EU sparked a global wave of risk aversion, dragging down digital assets and equities alike.
Dogecoin (DOGE), Ethereum (ETH), and XRP each shed over 5% in early Asian hours, erasing gains from earlier in the week. DOGE led losses with a 7% drop, contributing to a 4.5% slide in the CoinDesk 20 Index (CD20). The outlier was Toncoin (TON), rising 5% and outperforming the broader market.
Traditional safe havens gained favor. Gold surged past $3,109, hitting fresh highs as global investors sought shelter. Meanwhile, the MSCI World Index marked its longest losing streak in a month, and Asian equities headed for their steepest daily drop since late February.
Traders are also eyeing a looming $12.2 billion Bitcoin options expiry set for later Friday, with a max pain point at $85,000. The expiration could trigger additional price swings depending on post-release positioning.
“Markets are flat and conviction is fading,” QCP Capital wrote in a Telegram broadcast. “Until we get direction from the PCE inflation data or clarity on U.S. trade policy, any upward momentum in crypto will likely remain capped.”
The Personal Consumption Expenditures (PCE) index—seen as the Fed’s preferred inflation measure—is expected to heavily influence near-term monetary policy. A strong reading could reignite fears of rate hikes, while a weaker print may fuel hopes for easing and liquidity, typically favorable for bitcoin and other risk assets.
Canadian Prime Minister Mark Carney responded swiftly to Trump’s tariff comments, calling the U.S. an unreliable trade partner and pledging to broaden Canada’s global trade relationships.
“Bitcoin’s appeal as an inflation hedge could be tested in this environment,” said Innokenty Isers, CEO of Paybis. “If trade tensions continue and inflation persists, capital may flow to more stable safe havens than BTC.”
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