Bitcoin (BTC) dropped more than 2% over the past 24 hours, trading near $80,948 as a widespread selloff across global financial markets pushed investors away from riskier assets. Major cryptocurrencies, including Ethereum (ETH), XRP, and Solana (SOL), recorded even steeper declines amid growing concerns about inflation and economic growth.
The cryptocurrency market downturn coincided with weakness in equities, commodities, and risk-sensitive currencies, suggesting that broader macroeconomic pressures, rather than crypto-specific developments, are driving the latest losses.
Copper futures, widely considered an indicator of global economic activity, declined nearly 1% after falling 1.6% on Wednesday. Asian stock markets also weakened, led by sharp losses among South Korean semiconductor companies. Nasdaq futures and currency pairs such as the Australian dollar against the Swiss franc followed the downward trend.
Meanwhile, traditional safe-haven assets attracted investors. Gold prices climbed approximately 1%, while U.S. Treasury yields declined as demand for government bonds increased. The benchmark 10-year Treasury yield fell eight basis points to 5.08%, extending its retreat from a recent high of 5.36%.
The contrasting market movements have intensified concerns about stagflation, a combination of persistent inflation and sluggish economic growth.
InvestingLive analyst Giuseppe Dellamotta described the environment as one in which risk assets and the U.S. dollar struggle while gold benefits.
Wednesday's stronger-than-expected U.S. Consumer Price Index initially fueled expectations of another Federal Reserve interest rate increase. However, those expectations have since moderated.
According to CME FedWatch data, traders now assign a 29% probability that the Fed will raise its benchmark interest rate to 4%–4.25% later this month, down from nearly 50% immediately following the inflation report. Markets predominantly expect rates to remain unchanged at 3.75%–4%.
Investors are now awaiting Thursday's Producer Price Index report for further evidence of inflationary pressures. Another elevated reading could deepen the market's defensive positioning.
Meanwhile, analysts at 10x Research continue to favor holding Bitcoin during the ongoing artificial intelligence stock selloff, provided BTC remains above the critical $78,000 support level.
The firm also recommends using Ethereum as a hedge against long Bitcoin positions as uncertainty continues across global markets.
