Growing macroeconomic and geopolitical strains pushed investors further into defensive mode Friday, weighing on cryptocurrencies and equities alike.
Bitcoin slipped beneath $66,000 in early U.S. trading, reversing most of Wednesday’s rally. The asset fell roughly 3% within hours, sliding from near $68,000 to about $65,600. The broader CoinDesk 20 Index declined 2.3% over the past day, with Ethereum, XRP, and Solana posting comparable losses.
Crypto-exposed equities followed suit, giving back part of their recent advances. Strategy (MSTR), the largest corporate bitcoin holder, dropped 3%, while Coinbase (COIN) fell more than 2%. Shares of stablecoin issuer Circle (CRCL) slid nearly 5%, halting a sharp rebound that had lifted the stock close to 50% in only a few sessions.
Bitcoin miners — increasingly tied to artificial intelligence infrastructure narratives — saw steeper declines. IREN, Cipher Mining (CIFR), Core Scientific (CORZ), and TeraWulf (WULF) tumbled between 6% and 8%.
The selloff coincided with weakness in traditional markets. The Nasdaq Composite fell 0.8%, while the S&P 500 slipped 0.6%.
Inflation, Credit Stress and Geopolitics Weigh
A hotter-than-expected Producer Price Index (PPI) report dampened hopes for continued disinflation. Core PPI rose 3.6% year over year in January, above forecasts of 3.0% and up from 3.3% previously. Markets are now assigning a 96% probability that the Federal Reserve will leave rates unchanged at its March 18 meeting.
Concerns in credit markets have also resurfaced. Credit spreads widened to their highest levels in four months, while shares of private equity firms KKR, Ares Management, and Apollo Global Management sank 6%–7% to fresh lows during the session.
Geopolitical uncertainty added to the unease. Prediction market odds of potential U.S. military action against Iran increased after reports that the U.S. began evacuating embassy personnel from Israel.
Flight to Safety
Investors rotated into traditional safe-haven assets. The U.S. 10-year Treasury yield fell below 4% for the first time since November 2024. Gold rose 1% to trade above $5,230 per ounce, while silver surged 4% to reclaim the $92 level. Crude oil gained 2.3%, climbing above $67 per barrel.
Paul Howard, director at crypto trading firm Wincent, said bitcoin’s upside appears limited in the current risk-off environment. Following February’s options expiry, traders are positioning for BTC to remain capped in the $72,000–$74,000 range, with support seen around $54,000 through March.
“A cautious approach still appears warranted, particularly given that March has historically been a weaker month for crypto majors,” Howard noted.
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