Bitcoin, Ethereum, and XRP fell again Friday as crypto markets reacted to a renewed tech stock selloff and a major shift at the Federal Reserve that rattled risk assets.
Bitcoin dropped 1.3% to around $83,016, extending a week-long decline and failing to regain upward momentum. Ethereum slid 3.5%, while XRP fell 2.6%, with most of the damage coming from a sharp pullback late Thursday.
The selloff followed a steep decline in Big Tech, led by Microsoft shares plunging 12% after earnings pointed to slower growth in its cloud business. The risk-off move spilled into crypto markets almost immediately.
Pressure intensified after President Donald Trump announced Kevin Warsh as the next Federal Reserve chair, replacing Jerome Powell. Warsh, a former Fed governor, has historically opposed prolonged low interest rates.
Markets responded swiftly. The U.S. dollar strengthened, with the DXY index rising nearly 0.7% on Friday. Higher interest rate expectations tend to hurt non-yielding assets, including cryptocurrencies and precious metals.
Gold and silver both fell alongside crypto, underscoring the broader shift away from speculative and inflation-hedged assets.
Crypto-linked stocks showed mixed performance. Coinbase shares fell 2.5%, while Bitcoin-focused treasury firm Strategy rose 1.5%.
For now, digital assets remain under pressure as investors brace for a more hawkish Federal Reserve and watch closely for comments from Warsh that could signal the future path of monetary policy.
