Bitcoin tumbled below $79,000 on Friday, dragged down by a broad market rout as rising bond yields and stubborn inflation fears rattled investors. The drop wasn't isolated — stocks, gold, and other cryptocurrencies all fell, while crude oil surged past $100 a barrel. Traders are now rapidly repricing expectations for Federal Reserve rate hikes, with the selloff accelerating through the session.
Why everything is selling off
The trigger isn't crypto-specific. U.S. bond yields have been climbing all week, and Friday's inflation data stoked worries that the Fed will have to keep tightening well into the second half of 2026. That's been a headwind for risk assets across the board. The S&P 500 shed about 1.5% by midday, and gold — usually a haven — lost ground too. Even crude oil's rally past $100, normally a sign of economic strength, is feeding inflation anxiety rather than confidence.
What traders are watching now
The focus has shifted to the next Fed meeting in June. Markets had been pricing in one more quarter-point hike, but the bond market is now betting on a larger move. That repricing is hitting crypto especially hard, since bitcoin and altcoins have been trading more like high-beta tech stocks than digital gold in recent months. The $79,000 level had acted as a floor for bitcoin since early April; breaking it opens a path toward the next support near $75,000.
Oil above $100 adds pressure
Crude's push above $100 is a double-edged sword for crypto miners, who depend on power costs. Higher energy prices squeeze margins at a time when bitcoin's hash price is already under pressure. It's not a crisis yet, but it's another headwind that wasn't in the picture a month ago. The broader macro picture — sticky inflation, rising yields, expensive oil — leaves little room for a crypto rebound unless the Fed signals a pause.
All eyes are on the Fed's May meeting minutes, due Wednesday. If they confirm a hawkish lean, the selloff could deepen. For now, the market is in a wait-and-see mode — but bitcoin below $79,000 is a reminder that crypto doesn't escape a macro-driven storm.
