The crypto market fell Friday, with bitcoin recovering from a drop below $63,000 to trade down 1.2% since midnight UTC and ether (ETH) losing 1.74%. Total crypto market capitalization shed 1.86% to sit at $2.16 trillion.
The selloff is not isolated to crypto. Nasdaq 100 index futures dropped 1.91% and S&P 500 futures slipped 0.96%, pointing to macro forces driving the move rather than anything crypto-specific. Japan’s Nikkei 225 index dropped 4%, while South Korea’s Kospi stock exchange was closed for Constitution Day.
In a a classic risk-off rotation, the Dollar Index (DXY) rose to 100.75 while gold advanced 0.61% to climb back above $4,000.
The move to the downside can be attributed to a selloff in tech stocks across North America and Asia, as well as mounting tensions in the Middle East.
“The market is ending the week with two bruises: AI fatigue and Hormuz heat,” said Patrick Munnelly at Tickmill Group. “The semiconductor selloff has gone from profit-taking to position-clearing, dragging Asia toward its worst levels in months.”