Crypto Retreats as Metals Rally on Rising Geopolitical Risk.

Bitcoin slips below $87,000 after holiday rally; metals surge on geopolitical tensions as crypto stocks and miners retreat

  • Bitcoin fell from an overnight high above $89,000 to about $87,000 after U.S. markets opened following the Christmas holiday.
  • Precious and industrial metals hit fresh highs, with palladium and platinum up over 10% and silver and copper up about 5%.
  • Major cryptocurrencies and crypto stocks showed losses: bitcoin -1.6%, ether similar, DOGE down ~4%, XRP down ~3%.
  • Crypto exchanges and miners also dropped, led by declines at Gemini, Hut 8, and several mining firms.

First paragraph: U.S. trading on Friday saw crypto prices slip as stocks reopened after the Christmas holiday. Bitcoin briefly rose above $89,000 overnight but fell back below $87,000 shortly after U.S. markets opened. Metals moved sharply higher the same day, and geopolitical developments were cited alongside that metals rally.

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Precise moves: Bitcoin was down about 1.6% over 24 hours and ether fell by a similar percentage, with ether trading near $2,923. DOGE traded around $0.12, off more than 4%, and XRP was near $1.85, down about 3%. Gold rose roughly 1.5% to about $4,573 per ounce. Palladium and platinum each gained more than 10%, while silver and copper climbed about 5%.

Market context: Metals drew capital that might otherwise move into bitcoin as part of what the article described as the “global debasement trade.” Definition: debasement trade — an investment approach that seeks assets thought to protect against currency depreciation or inflation. The metals rally was noted alongside rising geopolitical tension after the U.S. struck Islamic State targets in Nigeria on Christmas Day and took actions that increased pressure on Venezuela by blocking sanctioned oil tankers.

Stocks and miners: Crypto-related stocks mostly fell. Coinbase (COIN) declined about 2%, Gemini (GEMI) fell about 6%, Bullish (BLSH) was down about 3.8%, and Galaxy Digital (GLXY) dropped about 3.5%. Bitcoin mining and crypto infrastructure firms including IREN, Cipher Mining (CIFR), Terawulf (WULF), and Marathon Digital (MARA) fell 5% or more; Hut 8 (HUT) led miners, down about 7.5%.

Other market benchmarks: The Nasdaq, S&P 500, and DJIA traded near flat in morning action.

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