CPI Anxiety Drags Stocks and Crypto Lower in Tandem

The recent Consumer Price Index (CPI) anxiety has led to a downturn in both stocks and cryptocurrencies, according to Bitget.

Ahead of the Wednesday CPI release, markets decided it was best to err on the side of caution and exit. This resulted in Bitcoin falling below $62K, shedding 2.7% over 24 hours and a steeper 8.4% over the past week.

The Nasdaq wasn't faring any better, dropping 3%, with AI-adjacent heavyweights Nvidia and Intel leading the retreat.

The correlation between risk assets is becoming more apparent, as institutional capital treats cryptocurrencies as part of the broader risk spectrum. When macro fear spikes, funds rotate out of speculative assets in favor of safe-haven investments like cash or short-duration Treasuries.