The cryptocurrency market has seen a reversal of fortunes as Bitcoin's price dropped below $66,000. This comes after a brief surge earlier in the week, which was largely erased by concerns over macroeconomic risks.
Investors are becoming increasingly risk-averse, driven by hot PPI inflation readings and credit stress concerns. The Producer Price Index (PPI) rose 3.6% year-over-year in January, exceeding expectations and sparking fears of a continued cooling trend. Markets now expect no rate cut from the Federal Reserve at its upcoming meeting.
The market's shift towards safe-havens is evident as investors seek refuge from the growing uncertainty. Gold prices have surged, with silver and crude oil also experiencing gains. Meanwhile, cryptocurrencies and related stocks have declined, reflecting the heightened risk aversion among investors.