Bitcoin And Global Stocks Fall Amid Broad Risk-Off Move

Bitcoin ($BTC) dropped more than 2% over a 24-hour period, trading near $80,972.85, while other major digital assets including XRP ($XRP), ether ($ETH), and solana ($SOL) suffered steeper declines. According to CoinDesk, the downturn reflected a broad-based exit from riskier investments rather than a crypto-specific event.

Global growth-sensitive assets also tumbled. Futures tied to copper fell nearly 1%, extending a 1.6% decline from the previous session. Asian stocks were dragged lower by a rout in Korean chipmakers, while Nasdaq index futures and risk-sensitive currency pairs also recorded losses. Market analysts noted that the environment bore characteristics of stagflation, where risk assets underperform while safe havens rally.

Safe Havens Advance

As risk assets retreated, Treasury yields fell while gold rose 1%. The yield on the benchmark 10-year Treasury note dropped by eight basis points to 5.08%, extending its pullback from a recent peak of 5.36%. Meanwhile, CME fed funds futures priced in a 29% chance of the Federal Reserve hiking its benchmark rate later this month into the 4% to 4.25% range, down from brief highs near 50% following a hotter-than-expected U.S. consumer price index report.

Traders are awaiting Thursday's producer price index to gauge remaining pipeline inflation. Analysts at 10x Research indicated a preference for holding bitcoin as long as it remains above $78,000 while artificial intelligence-related trades unwind, suggesting ether as a hedge for long bitcoin positions.

Key facts

• Bitcoin dropped more than 2% in 24 hours, trading near $80,972.85.
• The 10-year Treasury yield fell by eight basis points to 5.08%.
• Gold prices rose 1% amid a broad flight to safe havens.
• CME fed funds futures priced in a 29% chance of a rate hike later in the month.