Crypto stocks tumble as Nasdaq slips into correction amid $17 trillion market sell-off.

Crypto stocks fell sharply Friday, continuing a familiar pattern since the outbreak of the Iran conflict, where early-week gains often give way to losses by week’s end. Weakness in U.S. equities rippled through high-risk assets, pushing bitcoin BTC $67,360.28 below $66,000.

Among crypto equities, exchange operators Coinbase (COIN) and Galaxy Digital (GLXY) dropped nearly 7%, while Gemini (GEMI) slid almost 9%, one of the steepest declines in the sector. Robinhood (HOOD) fell nearly 6%, as its accelerated stock buyback did little to halt the downtrend.

Balance sheet plays tied to bitcoin also declined. MicroStrategy (MSTR) and Twenty One Capital (XXI) fell roughly 6%, while Ethereum-focused treasury names such as Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) dropped about 5%.

Miners, many of which are leveraged bets on both bitcoin and AI infrastructure, extended losses. Riot Platforms (RIOT), CleanSpark (CLSK), IREN (IREN), HIVE Digital (HIVE), and Hut 8 (HUT) all posted declines of 5%–8%. Even MARA (MARA) and Bitdeer (BTDR), which had outperformed Thursday, gave back gains, falling 6% and 8%, respectively, amid a sector-wide selloff.

The Federal Reserve faces a challenging backdrop, balancing inflationary pressures from rising oil prices against signs of weakening labor conditions. Richmond Fed President Tom Barkin warned that higher gas costs could curb consumer spending, calling hiring conditions “fragile.” Philadelphia Fed President Anna Paulson noted the Iran conflict created “new risks to both inflation and growth.”

Treasury yields reacted sharply to the commentary. The 10-year yield, which touched nearly 4.5% earlier Friday, erased intraday gains, while the two-year yield fell to 3.91% after rising to 4.03% earlier, reflecting sensitivity to Fed policy expectations. Investors have shifted from anticipating rate cuts this year to considering further hikes amid rising inflation pressures.

Equity markets have experienced a broad selloff in recent months, with approximately $17 trillion wiped out across the “Magnificent Seven” tech giants—including Nvidia (NVDA), Google (GOOG), and Microsoft (MSFT)—as well as gold, silver, and bitcoin. Bitcoin, which peaked near $126,000 in early October, has fallen roughly 45% since, while silver is down 45%, gold about 20%, and the tech giants have all suffered double-digit drawdowns.

The Nasdaq 100 has now entered correction territory, more than 10% off its January all-time high, while the S&P 500 is approaching a correction, currently down 8.5%. Global fixed-income markets have also come under pressure, with the iShares 20+ Year Treasury Bond ETF (TLT) down roughly 0.3% on Friday and 5% over the past month since the conflict began. In the same period, the S&P 500 has fallen about 6%, underscoring the underperformance of traditional 60/40 portfolios as yields rise.

This week’s market behavior follows a familiar pattern observed since late February. Early-week gains—often around 3% on Monday—fade as the week progresses, particularly as optimism around the Strait of Hormuz fully reopening diminishes. By Thursday and Friday, markets typically deteriorate further as investors reduce risk ahead of the weekend amid ongoing geopolitical uncertainty.