The Trump administration is reportedly preparing Friday to announce Kevin Warsh as the next Federal Reserve chairman, replacing Jerome Powell, a development that has roiled markets and sparked a selloff across all asset classes.
As a result, risk sentiment has deteriorated as investors price in possible changes in monetary policy stance.
Meanwhile, the DXY index, which tracks the strength of the U.S. dollar against a basket of major currencies, rose slightly to 96.6.
U.S. Treasury yields are slightly higher, with the benchmark 10-year yield around 4.25%.
Volatility increased with the Volatility Index (VIX) up 13% and the MOVE Index, which tracks volatility in the U.S. Treasury market, up 6%.
In pre-market trading Friday, Invesco QQQ (QQQ) is down more than 1%, trading around $622 per share.
Bitcoin fell significantly, sliding to $82,000. Due to this decline, bitcoin fell from the top ten global assets by market capitalization and now ranks eleventh, with a market capitalization of $1.6 trillion.
Bitcoin-related stocks followed suit. Strategy (MSTR), the largest publicly traded Bitcoin holder, is down 4% in premarket trading after falling about 10% on Thursday, now trading near $138. In the Bitcoin Mining and AI sector, IREN (IREN) is down 5% at $57, while Cipher Mining (CIFR) is down 4%. While Galaxy Digital (GLXY) and Coinbase (COIN) are down 3%.
Metals have absorbed much of the decline over the past 24 hours. Gold retreated towards $5,000 per ounce, while silver fell back to around $100 per ounce. Other commodities also weakened, with copper and oil both trading lower.
