Cryptocurrencies took a hit on Friday as a wave of risk-off sentiment swept global markets. Ether fell twice as much as Bitcoin, while the HYPE token dropped 10% as the chip trade unwound. Japan's Nikkei index suffered its worst session since March, underscoring the breadth of the selloff.
Ether leads the downside
Ether was the hardest hit among major cryptocurrencies on Friday, declining twice as much as Bitcoin. Despite the sharp drop, Ether is the only major crypto holding a gain on the week — albeit barely. That puts the spotlight on the ETH/BTC ratio, which has been a key metric for traders watching relative strength.
Nikkei's worst day since March
Japan's Nikkei 225 index posted its steepest decline in four months, adding to the pressure on risk assets. The drop came as global markets reacted to a shift in sentiment, with tech and growth stocks leading the way lower. The Nikkei's fall was the worst since March, a reminder of how quickly momentum can reverse.
HYPE caught in the chip unwind
The HYPE token dropped 10% on Friday, with the move tied to the unwinding of the chip trade. The token has been closely correlated with semiconductor stocks in recent months, and Friday's decline in chipmakers weighed on it directly. The selloff in HYPE outpaced the broader crypto decline, but it had been outperforming earlier in the week.
All eyes will be on Monday's Asian open. The Nikkei's reaction and whether Ether can hold its weekly gain will be the first tests of whether this rout is a one-day shakeout or something deeper.
