Bitcoin Falls Below $65,500 Amid Rising Macro Risks; Crypto Stocks Also Decline
On Friday, Bitcoin (BTC) slipped back below the $66,000 mark, erasing much of its midweek gains amid growing macroeconomic and geopolitical concerns that have dampened investor appetite for risk assets. The largest cryptocurrency fell approximately 3% from around $68,000 earlier this week to about $65,600 in early U.S. trading. This decline was mirrored across the broader crypto market, with major tokens such as Ethereum (ETH), XRP, and Solana (SOL) also retreating roughly 2-3%.
Crypto-related stocks did not escape the selloff. Strategy’s corporate bitcoin holding company MicroStrategy (MSTR) dropped 3%, Coinbase (COIN) declined over 2%, and stablecoin issuer Circle (CRCL) plunged nearly 5%, reversing a recent 50% rebound. Crypto mining firms, increasingly connected to artificial intelligence infrastructure development, performed worst; firms including IREN, Cipher Mining (CIFR), Core Scientific (CORZ), and TeraWulf (WULF) suffered losses between 6% and 8%.
Widening market pressures coincided with broader U.S. equity downturns, where the Nasdaq and S&P 500 indexes fell 0.8% and 0.6%, respectively. The risk-off sentiment has been fueled by several interrelated factors heightening investor caution.
Inflationary pressures rose as January’s U.S. Producer Price Index (PPI) data came in hotter than expected. Core PPI increased 3.6% year-over-year, surpassing estimates of 3.0% and up from 3.3% in December. This inflation signal reduced expectations for Federal Reserve interest rate cuts in the near future, with markets now assigning a 96% probability of no rate easing at the Fed’s March 18 meeting.
Credit markets are also under strain, as credit spreads have widened to their largest margin since late 2025. Private equity firms such as KKR (KKR), Ares Management (ARES), and Apollo Global Management (APO) saw their share prices fall 6%-7% to new lows, indicating concerns about underlying credit stress.
Geopolitical tensions further contribute to market unease. The U.S. has begun evacuating embassy personnel from Israel amid rising conflict concerns, and prediction markets increased the odds of U.S. military action against Iran. This has fueled fears of oil supply disruptions via the Strait of Hormuz, a critical route for roughly 20% of global oil shipments. While some experts argue that a full closure is unlikely or impractical, even a temporary spike in oil prices could impose inflationary shockwaves on the global economy.
In response to these risks, investors have sought shelter in safe-haven assets. The U.S. 10-year Treasury yield slipped below 4% for the first time since November 2024. Precious metals saw notable gains, with gold increasing more than 1% to above $5,230 an ounce, and silver climbing 4% back above $92 per ounce. Crude oil also advanced by 2.3% above $67 a barrel.
Looking ahead, analysts expect Bitcoin to trade within a wide range reflecting the heightened uncertainty. Paul Howard, director at trading firm Wincent, noted that following February options expiry, traders are positioning for Bitcoin to remain capped below $72,000–$74,000 with support near $54,000 through March. Historically, March has tended to be a weak month for crypto majors, reinforcing a cautious outlook.
With a mix of persistent inflation concerns, credit market stress, and geopolitical volatility, crypto investors are bracing for continued market fluctuations in the near term, prompting a cautious approach toward digital assets.
For ongoing updates on crypto market trends and macroeconomic developments, stay tuned to CoinDesk.