CoinDesk
Bitcoin, copper, stocks and Treasury yields fell as gold rose 1%, a cross-asset mix pointing to investors seeking safety. The 10-year Treasury yield dropped eight basis points to 5.08%, extending its pullback from a recent 5.36% peak. Copper futures fell nearly 1%, after losing 1.6% on Wednesday.
Why it matters
The moves put growth-sensitive assets under pressure while haven investments gained, with stagflation fears adding to the risk-off mood. InvestingLive analyst Giuseppe Dellamotta described the backdrop as stagflationary, with risk assets and the U.S. dollar generally underperforming while gold outperforms.
Expectations of a Federal Reserve rate hike, which rose after hotter-than-expected U.S. CPI, have since eased. CME fed funds futures price a 29% chance of a hike into the 4%–4.25% range later this month, with the remaining probability assigned to rates holding at 3.75%–4%. The hike odds briefly neared 50% after the CPI report.
Market impact
Thursday’s producer price index is the next inflation test. A hotter reading could intensify the risk-off mood. Traders are also watching whether the AI-related selloff continues to unwind.
10x Research favors Bitcoin while that unwind plays out, provided BTC holds above $78,000, and views Ether as a hedge for Bitcoin long positions. Ether is also testing a dual support zone near $2,350; a break below the horizontal and ascending trendlines could signal weakening demand and leave it exposed to deeper losses.
Frequently asked questions
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What did the cross-asset moves suggest about investor sentiment?
Bitcoin, copper, stocks and Treasury yields fell while gold rose, a pattern pointing to investors reducing risk and seeking safety.
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How did expectations for a Federal Reserve rate hike change?
CME fed funds futures priced a 29% chance of a hike into the 4%–4.25% range later in the month. The odds had briefly approached 50% after the hotter-than-expected CPI report.
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Why are traders focused on Thursday’s producer price index?
The PPI will provide another reading on inflation. A hotter-than-expected result could add pressure to the risk-off mood.
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What Bitcoin level is 10x Research watching?
10x Research favors holding Bitcoin while the AI selloff plays out, but only as long as BTC stays above $78,000.
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What would a break below Ether’s $2,350 support zone signal?
The zone combines a horizontal trendline and an ascending trendline. A break below it could indicate weakening demand and leave Ether exposed to deeper losses.
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