Stock Futures Slide: Bitcoin Holds Steady Near $68K as Investors Eye Fed Data
Stock Futures Slide: Bitcoin Holds Steady Near $68K as Investors Eye Fed Data
Markets are showing mixed signals today.
U.S. Stock Futures Point Lower After Presidents Day
U.S. stock futures fell on Tuesday as investors returned from the Presidents Day holiday. The S&P 500 futures dropped 0.4%, Nasdaq 100 futures slid 0.7%, and Dow Jones Industrial Average futures declined 0.3%.
The tech-heavy Nasdaq Composite just wrapped up its fifth straight weekly loss on Friday. This is the longest losing streak for the index since 2022. Both the Dow and S&P 500 have dropped in four of the last five weeks.
Why the weakness? Fears of artificial intelligence (AI) shaking up industries are hitting tech stocks hard. Sectors like wealth management, transportation, and logistics face big changes from AI. These concerns have drowned out good news, like last week’s softer inflation data.
- S&P 500 futures: -0.4%
- Nasdaq 100 futures: -0.7%
- Dow futures: -0.3%
January’s consumer price index (CPI) came in lower than expected on Friday. This eased some inflation worries. But growth fears and AI disruption talk have kept markets from rallying.
Bitcoin Steady at $68K Amid Low Volume and Holiday Slowdown
Bitcoin stayed calm on Tuesday, hovering around $68,000 with thin trading volume. Holiday closures in major markets cut activity on crypto exchanges. Plus, caution rules ahead of big U.S. economic reports.
The top crypto has fallen hard lately, down nearly 50% from its October peak. This sell-off has dragged the whole crypto market lower.
What’s driving the caution? Worries about U.S. monetary policy. Kevin Warsh, tipped as President Trump’s pick for Fed Chair, seems less likely to ease rates quickly. Markets fear tighter conditions than hoped.
Rumors of a “loyalty pledge” by Warsh have sparked debate on Fed independence. This adds uncertainty to rate cut bets.
Corporate Bitcoin Holders Face Heavy Losses
Big companies holding Bitcoin are reporting big losses. Strategy Inc. says it can handle a drop to $8,000 per Bitcoin. But its fourth-quarter results showed deep red ink.
The sell-off spotlights Strategy’s debt risks. Some loans tie to Bitcoin’s value, raising alarms if prices keep falling.
Japan’s Metaplanet Inc., a hotel chain, took a hit too. It booked a 102.2 billion yen loss on its Bitcoin stash. These cases show the dangers of big crypto bets for firms.
Corporate crypto treasuries can boost gains in bull runs but amplify pain in downturns. Balance sheets now carry more volatility risk.
Altcoins Mix Gains, Memecoins Lag Behind
Other major cryptos edged up Tuesday. Ethereum climbed 0.9% to $1,976. XRP gained 1.4% to $1.48. BNB, Solana, and Cardano rose 1.7% to 3%.
Memecoins struggled. Dogecoin dropped 2.2%, and Trump-themed $TRUMP fell 3.7%. This split highlights wild swings in crypto niches.
| Crypto | Price | Change |
|---|---|---|
| Bitcoin | $68,000 | Stable |
| Ethereum | $1,976 | +0.9% |
| XRP | $1.48 | +1.4% |
| Dogecoin | – | -2.2% |
Key Economic Data and Fed Minutes on Deck
This week brings must-watch releases:
- Wednesday: Fed’s January meeting minutes. Traders hunt for rate hints.
- Throughout week: Industrial production and trade data for growth clues.
- Friday: Personal Consumption Expenditures (PCE) index, the Fed’s top inflation measure.
These could swing markets. Softer data might fuel rate cut hopes, lifting risk assets like Bitcoin. Hot numbers could tighten policy fears.
Corporate Earnings in Focus
Equity traders eye earnings too. Walmart, DoorDash, and Molson Coors report this week. Their results will reveal consumer spending trends and business health amid slowdown fears.
What’s Next for Markets?
For crypto bulls, upcoming data is key. Dovish Fed signals could spark a rebound from the 50% drop. Bears point to corporate losses and policy hawks.
Stay tuned. Volatility looks set to rise with data drops. Diversify, watch levels, and trade smart.
Final Thoughts
The market mix of
What do you think? Will Bitcoin break out or test lower? Share in comments below.
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