Crypto stocks slumped Friday as weakness in U.S. equities rippled through high-risk assets, pushing bitcoin BTC $67,360.28 below $66,000. The selloff follows a recurring pattern since the Iran conflict began, where early-week gains often erode by week’s end.
Exchange operators were hit hard, with Coinbase (COIN) and Galaxy Digital (GLXY) down nearly 7%, Gemini (GEMI) falling almost 9%, and Robinhood (HOOD) sliding 6% despite an accelerated stock buyback. Bitcoin-linked balance sheet plays also declined, with MicroStrategy (MSTR) and Twenty One Capital (XXI) down about 6%, while Ethereum-focused treasuries such as Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) fell roughly 5%.
Crypto miners, many trading as leveraged bets on bitcoin and AI infrastructure, extended losses. Riot Platforms (RIOT), CleanSpark (CLSK), IREN (IREN), HIVE Digital (HIVE), and Hut 8 (HUT) dropped 5%–8%. MARA (MARA) and Bitdeer (BTDR), which outperformed Thursday, gave back gains, falling 6% and 8%, respectively.
The Federal Reserve faces a complex backdrop: rising oil prices are fueling inflation while labor conditions show signs of fragility. Richmond Fed President Tom Barkin warned higher gas costs could weigh on consumer spending, while Philadelphia Fed President Anna Paulson noted the Iran conflict introduces “new risks to both inflation and growth.”
Treasury yields reacted sharply: the 10-year briefly hit 4.5% before retreating, and the two-year yield fell to 3.91%, reflecting sensitivity to Fed policy. Investors have shifted from expecting rate cuts to considering potential hikes amid rising inflation.
Equity markets have broadly declined, with roughly $17 trillion wiped out across the tech-heavy “Magnificent Seven,” bitcoin, gold, and silver. Bitcoin is down about 45% from its $126,000 peak, silver 45%, gold 20%, and the largest tech stocks are deep in double-digit drawdowns. The Nasdaq 100 has entered correction territory, down over 10% from its January high, while the S&P 500 is nearing correction at -8.5%.
This week follows a familiar pattern: strong gains on Monday give way to steady profit-taking, with risk-off sentiment intensifying Thursday and Friday amid persistent geopolitical uncertainty.
