Bitcoin Rebound Cut as US Stocks Dip, Gold Up on Macro Risk

What to Know

$65,600 — Bitcoin shed 3% from around $68,000 as Friday's macro headwinds erased Wednesday's rally
3.6% — January core PPI came in well above the 3.0% estimate, dimming hopes for near-term rate cuts
$5,230 — Gold pushed higher while silver surged 4%, underscoring a broad flight to safe-haven assets
96% — Markets now price in virtually no chance of a Federal Reserve rate cut at the March 18 meeting

Bitcoin saw its midweek rebound evaporate on Friday as the largest cryptocurrency tumbled 3% from roughly $68,000 to $65,600 during the early U.S. session. Hotter-than-expected inflation data, deteriorating credit conditions, and rising geopolitical tensions drove investors out of risk assets and into safe havens.

Crypto Market Selloff Deepens Across Tokens and Equities

The broader digital asset space followed Bitcoin lower. The CoinDesk 20 Index shed 2.3% over the prior 24 hours, with ether (ETH), XRP (XRP), and solana (SOL) posting comparable declines, according to market data.

Crypto-linked stocks surrendered much of the week's gains. Strategy (MSTR), the largest corporate Bitcoin holder, slid 3%, while Coinbase (COIN) retreated more than 2%. Stablecoin issuer Circle (CRCL) dropped nearly 5%, snapping a rebound that had lifted the stock close to 50% in just two sessions.

Miners tied to AI infrastructure fared even worse. IREN (IREN), Cipher Mining (CIFR), Core Scientific (CORZ), and TeraWulf (WULF) each fell between 6% and 8% during the session.

Why Did Bitcoin Drop Below $66,000 on Friday?

A hotter-than-expected inflation print was the primary catalyst. The Producer Price Index for January showed core PPI rising 3.6% year over year, above the 3.0% estimate and up from 3.3% previously, according to government data. Markets now price in a 96% chance the Fed holds rates steady at its March 18 meeting.

Credit spreads widened to their broadest level in four months. Private equity firms KKR (KKR), Ares (ARES), and Apollo Global Management (APO) each plunged 6% to 7% to fresh lows. Geopolitical risk added to the unease after prediction market odds of U.S. strikes against Iran climbed following reports that American embassy staff had begun evacuating from Israel.

Safe-Haven Assets Rally as Risk Appetite Fades

Gold climbed 1% to above $5,230 per ounce, while silver surged 4% to reclaim levels above $92, according to commodities data. Crude oil rose 2.3% to above $67 a barrel.

In fixed income, the U.S. 10-year Treasury yield slipped below 4% for the first time since November 2024. U.S. equity indexes also fell, with the Nasdaq down 0.8% and the S&P 500 lower by 0.6%.

What This Means Going Forward

The failed rebound leaves Bitcoin vulnerable heading into the weekend. With the Fed unlikely to cut rates in March and credit conditions tightening, traders appear to be hedging against further downside. Positioning in futures and options shows participants bracing for additional declines, according to derivatives analysts.

Sticky inflation, geopolitical escalation, and widening credit spreads create a difficult backdrop for risk assets. Until macro conditions stabilize, Bitcoin and the broader crypto market may continue trading in lockstep with equities rather than serving as a hedge.