Bitcoin (~$85.9K, -2.5%) and Ethereum (~$2.95K, -3.6%) are falling for a fourth straight session, continuing the retreat that began after last week’s Fed rate cut and amid renewed anxiety over 2026 policy paths. Reuters and Yahoo Finance note that traders are de-risking ahead of a ‘data dump’ of delayed U.S. jobs, retail sales and inflation figures that could shift rate-cut expectations.
Showing posts with label Reuters. Show all posts
Showing posts with label Reuters. Show all posts
Strategy (MSTR) remains the leveraged Bitcoin proxy to watch
Strategy Inc., the Bitcoin-hoarding ex-MicroStrategy, closed Friday near $176.60, down 3.7%, as Reuters and TS2.Tech note its extreme earnings and price sensitivity to BTC due to fair-value accounting and heavy leverage. The stock narrowly retained its Nasdaq-100 membership even as MSCI weighs excluding ‘digital asset treasury’ companies from its indices in January, leaving the name highly exposed to both Bitcoin volatility and index-eligibility headlines.
Crypto retreats as AI-driven tech selloff weighs on risk assets
Bitcoin trades around $90,246, down roughly 2.5%, and Ethereum falls nearly 4.8% as concerns over an AI spending bubble and weak tech sentiment—highlighted by sharp drops in Oracle and Broadcom—spill into digital assets (Reuters, Yahoo Finance, CoinDesk). Broader risk-off flows and elevated volatility in crypto proxies such as Strategy Inc. (MSTR) are amplifying downside pressure.
Macro backdrop: Dovish Fed and softer dollar support hard assets, not crypto
The Fed’s third 25 bp cut and plans to buy $40B/month in T‑bills have weakened the dollar toward two‑month lows and fueled expectations of further easing in 2026 (Trading Economics, FXStreet, Reuters). This has propelled gold back toward record highs above $4,300/oz and kept copper elevated, while crypto has decoupled short term as investors rotate toward metals and away from speculative tech and digital assets (Investing.com).
Strategy Inc (MSTR) highlights equity-crypto crosscurrents
MicroStrategy’s successor, Strategy Inc, is trading around $183 and acting as a high-beta BTC proxy as index providers weigh whether its Bitcoin-heavy balance sheet should disqualify it from the Nasdaq 100 and certain MSCI benchmarks, per Reuters and TS2.Tech. Analysts warn that a potential removal could force roughly $1.6 billion in passive outflows, amplifying the impact of Bitcoin swings on crypto-equity valuations.
Derivatives and ETF flows keep crypto sentiment cautious
CoinDesk and Coinbase data point to prior weeks’ heavy BTC and ETH ETF outflows, large derivatives liquidations, and a ‘volatility meltdown’ that have left retail sidelined and whales as marginal buyers. This overhang, plus ongoing fears around crypto-treasury stocks like MicroStrategy flagged by Reuters, is limiting the impact of the Fed cut on spot prices.
Solana modestly higher, supported by real-world adoption headlines
SOL trades around $135–$137, slightly positive on the day even as broader altcoins remain under pressure (Kitco quotes). Sentiment is underpinned by news that J.P. Morgan issued commercial paper on Solana and that State Street and Galaxy plan a tokenized liquidity fund on the network in 2026, underscoring ongoing institutional experimentation (Reuters, CoinDesk).
Bitcoin dips below $90K intraday as leverage washes out
BTC is trading near $89,700, off about 2.5% on the day after briefly breaking below $90,000 in Asian trade. News from Reuters, Bloomberg and Yahoo Finance highlight that over $440M–$500M of derivatives liquidations around the Fed decision and overnight selling have accelerated the move, even as on-chain and ETF flow data suggest medium-term structural support remains.
Macro backdrop: dovish Fed vs. AI risk-off keeps crypto in the crossfire
The Fed’s third straight cut and softer inflation tone pushed the dollar lower and gold near record highs, normally supportive for crypto. But articles from Reuters, Bloomberg and Investing.com note that renewed fears of an ‘AI bubble’ after Oracle’s weak outlook, plus uncertainty over the Fed’s 2026 path and future leadership, have investors de-risking across speculative assets, with crypto taking an outsized hit.
Bitcoin slips back toward $90K despite Fed cut and macro tailwinds
BTC trades around $90,264, down roughly 2%, after briefly reclaiming $94K on expectations of a ‘dovish’ Fed cut. News from Yahoo Finance, Reuters and CoinDesk note that hawkish messaging, lingering fears from October’s $19B leverage wipeout, and renewed AI-growth worries have capped any post-Fed relief rally.
AI jitters and Oracle miss sour risk appetite, dragging on crypto beta
Reuters and Investing.com report that weak Oracle earnings and heavier AI capex have raised doubts about the AI trade, hitting tech stocks and broader risk sentiment. Analysts quoted by Reuters say crypto “didn’t really want to know about” the equity rally, underscoring how AI-linked risk-off flows are spilling into Bitcoin and altcoins.