Crypto mining stocks climb as OpenAI partners with CoreWeave; Galaxy debuts with a jump on Nasdaq.

Crypto Stocks Surge Amid Inflation Concerns; Bitcoin Steady Near $104K

Despite escalating inflation fears, cryptocurrencies mostly held steady on Friday, with Bitcoin hovering around the $104,000 mark.

Bitcoin (BTC) ended near $102,586.74 after modest trading, while crypto-related stocks experienced strong gains. Companies focused on crypto mining and data centers—such as Cipher Mining (CIFR), Hive Digital (HIVE), Hut 8 (HUT), and TeraWulf (WULF)—jumped 10% to 20%, fueled by excitement over increased AI-related computing demand. This boost came after CoreWeave (CRWV) announced a $4 billion contract with OpenAI, the creator of ChatGPT, lifting CoreWeave shares by over 26%.

Galaxy Digital (GLXY) made a notable Nasdaq debut, rising 8% in its first day on the U.S. exchange. Formerly listed only in Toronto, Galaxy operates in crypto asset management and also runs a data center business.

Coinbase (COIN) rebounded 9% after a steep drop on Thursday, which followed reports of a customer data breach and ongoing U.S. SEC regulatory investigations.

DeFi Development (DFDV), a real estate technology firm with ties to Solana (SOL), surged 45% to new highs after announcing a validator partnership with the memecoin BONK and bolstering its Solana holdings.

On the market front, Bitcoin gained 1.3% over 24 hours, holding steady just above $104,000. Ethereum (ETH) rose 2.3% to $2,580, while the CoinDesk 20 Index remained flat. XRP lagged after a judge dismissed Ripple’s proposed settlement with the SEC.

Inflation Expectations Reach Decades-Long Peaks, But Markets Stay Resilient

The University of Michigan’s recent survey revealed consumers expect inflation to hit 7.3% over the next year—the highest level since the 1980s—and long-term inflation expectations rose to 4.6%, a multi-decade high.

Louis Navellier, chief investment officer at Navellier & Associates, commented, “Inflation expectations are at levels that defy logic.”

The survey showed significant political differences, with Republicans anticipating much lower inflation. Despite these alarming figures, major U.S. stock indices closed the day higher, shrugging off inflation worries.

Yet, rising inflation concerns could affect Federal Reserve policy, potentially causing the central bank to pause planned rate cuts.

“The Fed is watching inflation expectations closely,” Navellier said. “Heightened tariff-related inflation could prompt the Fed to maintain current rates longer.”