Cryptocurrencies and stocks both dropped on Friday, wiping out the gains made earlier in the week due to traders reacting to higher-than-anticipated inflation. Bitcoin and ether saw their decline continue from Thursday, with Bitcoin trading 6% lower and remaining below $70,000 according to Coinbase’s latest update. Ether (ETH) experienced a 7% decrease in value in just 0.53 hours, trading at approximately $3,700. Noelle Acheson, the author of the Crypto is Macro Now newsletter, attributed this decline to the cumulative impact of negative inflation news throughout the week, which also affected BTC’s rise in value. Yesterday’s reminder of the seriousness of the adjustment in rate expectations caused significant harm, leading to a drop in BTC below $69,000. The negative impact on sentiment is persisting today. Learn more about the potential impact of banking sector instability on the cryptocurrency markets. The S&P 500 and Nasdaq Composite indexes both fell at the beginning of Friday’s trading session, with drops of 0.6% and 1%, respectively. Stocks have mostly erased the earlier gains from the week, but analysts believe that the decrease is not as drastic as anticipated due to recent economic data. Tom Essaye from Sevens Report Research mentioned that the data this week has been unfavorable for stocks, weakening the optimistic outlook. The producer price index (PPI) reported a 0.6% increase in February for selling prices of domestic manufacturers. Economists had predicted a 0.3% increase for the month. The Core Producer Price Index for February saw a 0.3% monthly increase, surpassing the projected 0.2% rise but falling short of the 0.5% seen in January. According to a survey by Paradigm, one in five US voters have purchased cryptocurrency. There is a low likelihood of rate cuts in the near future, as markets are predicting a 91% chance that the Federal Reserve will keep rates steady through May, based on data from CME Group. The Fed will announce its decision on rates and economic projections next week after the Federal Open Market Committee meeting concludes on Wednesday. Stay informed by subscribing to our free daily newsletter.