TLDR
- Bitcoin fell back to $65,000 after erasing gains above $70,000, dropping 2% in 24 hours alongside Ethereum and Solana
- The crypto decline mirrored tech sector weakness, with the software ETF (IGV) tumbling 3% and down 21% year-to-date
- Gold dropped 3.1% to $4,938 per ounce while silver plunged 10.3% to $75.08 after afternoon sell-off
- S&P 500, Nasdaq 100, and Dow Jones futures all fell about 0.2% ahead of Friday’s consumer inflation data
- Apple suffered its steepest one-day drop since April 2025, falling 5% as all Magnificent Seven stocks finished lower
Bitcoin has returned to the $65,000 level after giving up most of its recent recovery. The cryptocurrency erased gains that had pushed it above $70,000 last week.
The decline came as Bitcoin fell 2% over 24 hours. Ethereum and Solana tracked similar losses during the same period.
The crypto market pullback mirrored weakness across the broader technology sector. The Nasdaq composite index dropped 2% on Wednesday as investors sold tech stocks.
Software companies faced particularly heavy selling pressure. The iShares Expanded Tech-Software Sector ETF dropped 3% on Wednesday alone.
The software sector has now fallen 21% year-to-date. Investors are questioning the valuations of these companies as AI coding capabilities advance rapidly.
Macro strategist Jim Bianco noted the connection between software stocks and cryptocurrencies. He described crypto as “programmable money” and said both asset classes face similar market pressures.
The software ETF has fallen back to levels seen during last week’s market panic. This represents a sharp reversal from earlier optimism in the sector.
Precious Metals Face Steep Declines
Gold and silver experienced sudden afternoon sell-offs on Wednesday. Both metals had shown modest gains earlier in the trading session.
Silver finished the day down 10.3% at $75.08 per ounce. Gold fell 3.1% to close at $4,938 per ounce.
The sharp afternoon plunges caught many traders off guard. The speed of the decline suggested coordinated selling across precious metals markets.
Stock Futures Point to More Weakness
U.S. stock futures edged lower on Friday morning. Contracts on the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all fell about 0.2%.
Markets remain cautious following Thursday’s broad sell-off. Fears about AI disruption have spread beyond technology into sectors like real estate and transportation.
All seven Magnificent Seven megacap stocks finished Thursday’s session lower. Apple recorded its steepest one-day drop since April 2025, falling 5%.
Earnings Provide Mixed Signals
Applied Materials stock surged over 10% in premarket trading Friday. The chip equipment maker beat quarterly expectations and issued a positive outlook.
Rivian shares jumped 13% after reporting revenue of $1.286 billion. This figure exceeded analyst predictions of $1.26 billion.
Investors are now waiting for January’s consumer price index data. The inflation reading will help shape expectations for Federal Reserve interest rate policy.
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