Notably, Bitcoin’s decline was modest compared to the carnage in equities. The Magnificent Seven megacap tech stocks shed $797 billion in market value on Thursday—their worst day since April 2025—as Alphabet’s aggressive AI spending forecast spooked investors. Bitcoin fell less than 1% during the same window, raising the possibility of a nascent decoupling from the AI trade that had tethered crypto to tech sentiment for much of the month. Whether that resilience holds will depend on whether the macro backdrop continues to deteriorate.
Friday brought a tentative reprieve. Treasury yields retreated after a Reuters report that Pakistan, with China’s support, was exploring a path to restart U.S.-Iran peace talks. The 10-year yield pulled back to 4.657%, and Brent crude fell 4% to around $96 per barrel. Bitcoin edged higher to $65,400, and Ethereum showed signs of stability near $1,900. Yet the underlying tensions remain unresolved, and the bond market’s warning—that inflation risk is rising and the Fed’s lighter-touch communication strategy may amplify yield swings—has not been silenced.