Crypto Markets Face Late-Session Sell-Off Amid Macroeconomic Jitters

The cryptocurrency market experienced a turbulent trading session, with initial stability giving way to a significant sell-off during the late U.S. hours. Despite a relatively calm start, where markets seemed to shrug off renewed threats of international trade tariffs and geopolitical tensions, risk-off sentiment ultimately prevailed. Bitcoin (BTC) saw its price action turn negative, slipping approximately 2.5% over a 24-hour period to trade around the $65,900 level. This downturn set the tone for the broader market, as most major altcoins followed suit with even steeper declines. The weakness in digital assets contrasted with a mixed performance in U.S. equities, which managed to recover from early lows, suggesting that crypto traders are currently more sensitive to macroeconomic headwinds. The late-day slump erased earlier gains and has positioned key assets at critical support levels heading into the weekend.

Bitcoin Falters While Select Altcoins Show Relative Strength

Bitcoin's price trajectory showed signs of strain as it failed to sustain momentum above key resistance. The BTC/USDT pair, after reaching a 24-hour high near $68,473, retraced sharply, finding a low around $65,116 before a slight recovery. This price action indicates significant overhead supply and trader apprehension. The selling pressure was not isolated to Bitcoin. Major altcoins experienced more pronounced drops, with Ethereum (ETH) falling towards the $3,439 mark, a decline of over 5%. Similarly, other large-cap tokens like XRP and Dogecoin (DOGE) saw losses in the 5-7% range, reflecting a broad-based flight from risk within the crypto ecosystem. The ETH/BTC pair also showed weakness, dipping around 0.6% to 0.05258, suggesting Bitcoin was holding its ground slightly better than the leading altcoin during the sell-off.

Outliers Emerge in a Sea of Red

However, the market was not entirely monolithic in its downturn. Solana (SOL) and Avalanche (AVAX) emerged as notable outliers, displaying remarkable resilience. SOL/USDT climbed nearly 3%, pushing its price to $151.15 with a 24-hour high of $152.69. The SOL/BTC pair was even more telling, gaining 2.9% to trade at 0.002212, indicating genuine outperformance against the market leader. Similarly, the AVAX/BTC pair surged an impressive 6.7%, highlighting strong buying interest in specific ecosystems despite the broader bearish sentiment. This divergence suggests that traders are becoming more selective, allocating capital to projects with strong underlying narratives or ecosystem growth rather than indiscriminately selling off the entire market. Trading volume for XRP/USDT was notably high at over 170 million, indicating significant activity as its price fell, potentially a mix of panic selling and dip-buying.

Crypto Stocks Tumble as AI Narrative Provides a Lifeline for Miners

The risk-off sentiment was even more severe in the crypto-adjacent equities market. Shares of major exchange Coinbase (COIN) dropped a sharp 6%, while the newly public Circle (CRCL) experienced a more dramatic 16% plunge. This significant downturn in key crypto infrastructure stocks points to waning institutional confidence in the short term. In contrast, the Bitcoin mining sector presented a more complex picture. While Hut 8 (HUT) fell 6.5%, aligning with the broader market weakness, Core Scientific (CORZ) remained a focal point of positive news. Following its 30% surge on Thursday, driven by reports of a potential acquisition offer from AI firm CoreWeave, the stock held its ground. This development underscores a growing narrative where the valuation of Bitcoin miners is becoming increasingly tied to their potential as high-performance computing (HPC) and AI infrastructure providers, creating a potential hedge against pure crypto market volatility and a new catalyst for growth.

Looking ahead, the market remains on edge, caught between conflicting signals. On one hand, persistent geopolitical risks and the prospect of renewed trade wars create a challenging environment for risk assets. On the other hand, recent economic data, such as a softer-than-expected Producer Price Index and rising jobless claims, could pressure the Federal Reserve to adopt a more dovish monetary policy stance sooner than anticipated. According to analysts at Coinbase, markets have largely disregarded the direct economic risks from tariffs so far, but this complacency could be tested. For now, traders are closely watching Bitcoin's ability to hold support above $65,000. A break below this level could trigger a further cascade of selling across the market, while a successful defense could set the stage for a much-needed relief rally.