Crypto Stocks Rally on AI Deal and Nasdaq Debut Despite Rising Inflation Expectations
Cryptocurrency prices mostly held steady on Friday, with Bitcoin trading near $104,000, while inflation expectations climbed to levels not seen in decades.
Bitcoin (BTC) closed around $102,586.74 after a mostly flat session. Meanwhile, crypto-related equities rallied strongly. Mining and data center companies such as Cipher Mining (CIFR), Hive Digital (HIVE), Hut 8 (HUT), and TeraWulf (WULF) gained between 10% and 20%, boosted by enthusiasm over growing AI infrastructure demand following CoreWeave’s (CRWV) announcement of a $4 billion contract with OpenAI, the creator of ChatGPT. CoreWeave shares soared more than 26%.
Galaxy Digital (GLXY) also made headlines with its Nasdaq debut, jumping 8% in its first day on the U.S. exchange. Previously listed on the Toronto Stock Exchange, Galaxy manages crypto investments and operates a data center business.
Coinbase (COIN) bounced back with a 9% gain after a sharp drop the previous day caused by a customer data breach and ongoing regulatory scrutiny by the SEC.
DeFi Development (DFDV), a real estate tech company with a Solana (SOL) treasury strategy, surged 45% to new record highs following news of a validator agreement with memecoin BONK and an expanded SOL holding.
Bitcoin ended the day 1.3% higher, holding just above $104,000, while Ether (ETH) gained 2.3% to $2,580. The broader CoinDesk 20 Index remained flat, with XRP underperforming after a judge rejected Ripple’s settlement offer to the SEC.
Inflation Expectations Hit Multi-Decade Highs Amid Political Divide
The University of Michigan’s latest consumer survey showed that 1-year inflation expectations surged to 7.3%, the highest since the 1980s, up from 6.5%, while long-term inflation expectations climbed to 4.6%, a multi-decade peak.
Louis Navellier, chief investment officer at Navellier & Associates, described the figures as “unbelievably high.”
Political differences were stark, with Republicans expecting much lower inflation than Democrats. Despite the inflation spike, major U.S. stock indices finished the session higher.
However, these elevated inflation expectations may prompt the Federal Reserve to delay interest rate cuts in the near future.
“The Fed pays close attention to consumer inflation expectations,” Navellier said. “Concerns about tariff-driven inflation may convince policymakers to maintain rates longer.”
