Crypto markets are wobbling once again as global trade tensions flare and investors brace for fresh inflation data out of the U.S. In early Friday trading, Dogecoin (DOGE), Ethereum (ETH), and XRP each fell over 5%, reflecting growing unease across risk assets.
The pullback came after former President Donald Trump reignited trade war concerns by threatening steeper tariffs on Canada and the EU—sparking fears of a broader economic rift that could weigh on global growth.
DOGE led the sell-off among top tokens with a 7% slide, dragging the CoinDesk 20 Index down 4.5%. Ethereum and XRP followed suit, while Toncoin (TON) was the lone standout, gaining 5% over the past 24 hours.
Meanwhile, traditional safe-haven assets rallied. Gold soared above $3,109 in Asian trading, and the MSCI World Index booked its longest losing streak in a month. Asian equities saw their sharpest daily fall since late February, according to Bloomberg.
Crypto volatility may only intensify, with $12.2 billion in Bitcoin options set to expire later Friday. With the “max pain” point sitting at $85,000, markets are bracing for potential price swings post-expiry.
“Momentum is drying up across the board,” said analysts at QCP Capital in a morning note. “Bitcoin spot is flat, open interest is bleeding, and with the PCE inflation data incoming, markets are holding their breath.”
The Personal Consumption Expenditures (PCE) index, due later today, is the Fed’s go-to inflation gauge. A hot reading could rekindle fears of interest rate hikes, pressuring crypto further. A cooler figure, however, might ease nerves and revive risk appetite.
Canada responded quickly to Trump’s rhetoric, with Prime Minister Mark Carney calling the U.S. an “unreliable partner” and signaling a pivot toward strengthening trade ties elsewhere.
“Risk-averse capital is increasingly wary of bitcoin,” said Paybis CEO Innokenty Isers. “If this trade war escalates and inflation persists, BTC might lose some of its edge as a hedge—at least in the short term.”
