Bitcoin (BTC) dropped below $66,000 during early U.S. trading on Friday as mounting macroeconomic pressures and geopolitical tensions pushed investors away from risk assets. The leading cryptocurrency erased most of Wednesday’s rally, sliding roughly 3% from near $68,000 to around $65,600 within hours. The broader crypto market mirrored the decline, with the CoinDesk 20 Index down 2.3% over the past 24 hours. Major altcoins including Ethereum (ETH), XRP, and Solana (SOL) posted similar losses.
Crypto-related stocks also retreated. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, fell 3%, while Coinbase (COIN) slipped more than 2%. Stablecoin issuer Circle (CRCL) dropped nearly 5%, reversing part of its recent 50% surge. Bitcoin mining stocks, which have increasingly been linked to AI infrastructure growth, saw steeper losses. IREN, Cipher Mining (CIFR), Core Scientific (CORZ), and TeraWulf (WULF) declined between 6% and 8%.
The sell-off coincided with weakness in U.S. equity markets, as the Nasdaq fell 0.8% and the S&P 500 lost 0.6%. A hotter-than-expected Producer Price Index (PPI) report fueled inflation concerns. Core PPI rose 3.6% year over year in January, exceeding the 3.0% forecast and December’s 3.3% reading. As a result, markets now assign a 96% probability that the Federal Reserve will hold interest rates steady at its March 18 meeting.
Credit market stress added to the cautious mood, with spreads widening to four-month highs. Private equity firms including KKR, Ares, and Apollo fell sharply. Meanwhile, geopolitical tensions escalated after reports of U.S. embassy evacuations in Israel, increasing speculation about potential U.S. strikes against Iran.
Investors shifted toward safe-haven assets. The 10-year U.S. Treasury yield dipped below 4% for the first time since November 2024. Gold climbed above $5,230 per ounce, silver surged 4% past $92, and crude oil rose 2.3% above $67 per barrel.
Analysts suggest Bitcoin may remain range-bound below $72,000-$74,000, with support near $54,000, as risk-off sentiment dominates and March historically trends weaker for crypto markets.
