Bitcoin and stocks fall ahead of key inflation report

Bitcoin and stocks dropped sharply on Monday as investors braced for inflation data and uncertainty over the Federal Reserve’s next moves.

The S&P 500 fell 2.6%, the Nasdaq-100 dropped 3.1%, and the Dow Jones declined 2.2%, with investors waiting for the latest Consumer Price Index (CPI) report on Wednesday.

Crypto markets followed the sell-off. Bitcoin fell 5.8% to $76,000, while Ethereum dropped 11.5% to $1,800, according to CoinGecko. Over the past 30 days, Bitcoin is down 19% and Ethereum is down 29%, showing how macroeconomic uncertainty is impacting riskier investments.

Investors are watching the Federal Reserve’s policies closely. If inflation remains high, the Fed may delay cutting interest rates, which could keep markets under pressure. Some analysts, however, believe that improving liquidity conditions – or the amount of money flowing through financial markets – could help Bitcoin and other digital assets bounce back in the months ahead.

Trump to reverse anti-crypto banking policies

President Donald Trump is preparing to sign an executive order that would make it easier for crypto companies to access banking services.

The order is expected to roll back restrictions from the Biden administration, including policies under "Operation Chokepoint 2.0" – a controversial effort that allegedly discouraged banks from working with crypto firms.

It may also include rules on stablecoins and how the Federal Reserve treats digital assets, reinforcing Trump’s pro-crypto stance.

This follows Trump’s recent move to create a U.S. Bitcoin Reserve, where the government holds 198,100 BTC from forfeitures. His latest order could further integrate crypto into the financial system, helping businesses that struggled to access traditional banking services.

SEC backs off crypto crackdown

The Securities and Exchange Commission (SEC) is rethinking its approach to crypto regulation, according to Acting SEC Chair Mark Uyeda.

Uyeda criticized former SEC Chair Gary Gensler’s policies, saying that the government had overreached by trying to regulate crypto like traditional finance.

One major issue is a 2020 proposal that would have required crypto trading platforms and DeFi protocols to register with the SEC. Uyeda said the rule was originally meant for U.S. Treasury markets, but under Gensler, it was expanded to include crypto.

Now, with Gensler gone, the SEC is taking a more collaborative approach. In January, it formed a crypto task force, led by pro-crypto Commissioner Hester Peirce, to provide clearer industry rules.

This shift suggests regulators are becoming more open to crypto, which could reduce uncertainty for exchanges, blockchain projects, and DeFi platforms.

Coinbase to launch 24/7 Bitcoin and Ethereum futures

Crypto exchange Coinbase is launching 24/7 Bitcoin and Ethereum futures trading in the U.S., making it the first American exchange to offer round-the-clock crypto derivatives.

This means traders will no longer have to wait for markets to open to buy or sell futures contracts, making crypto trading more flexible.

Futures allow traders to bet on the price of Bitcoin and Ethereum at a future date, making them a popular tool for hedging and speculation. Right now, most crypto futures trading happens on international exchanges, but Coinbase’s move brings the U.S. closer to global trading standards.

Crypto futures are a huge market, with $879 billion traded in the past 24 hours, compared to $151 billion in spot trading (where people buy and sell actual coins), according to CoinGecko.

Coinbase’s new offering comes after its 2022 acquisition of FairX, a regulated derivatives exchange, giving it the necessary approvals to expand into futures trading.

OpenAI signs $11.9B AI deal with CoreWeave

OpenAI has signed a five-year, $11.9 billion deal with cloud computing company CoreWeave, securing the computing power needed to train its AI models.

The deal gives OpenAI $350 million in CoreWeave stock, linked to the company’s upcoming $35 billion IPO. For OpenAI, this diversifies its computing partners beyond Microsoft, which has been its main infrastructure provider.

For CoreWeave, this deal is huge ahead of its stock market debut. The company originally started as an Ethereum mining operation but pivoted to AI cloud computing in 2019. Now, it’s one of Nvidia’s largest GPU customers, showing how former crypto mining firms are finding new roles in the AI boom.

This partnership highlights the growing crossover between AI and blockchain, as the computing infrastructure powering both industries becomes more interconnected.

Crypto is evolving beyond price speculation

Even though crypto prices are down, the infrastructure behind the industry is getting stronger.

The SEC is stepping back from aggressive regulation, which could create a friendlier environment for blockchain innovation. Coinbase’s 24/7 futures launch brings the U.S. closer to international markets, while Trump’s banking reforms could make it easier for crypto companies to operate.

Meanwhile, OpenAI’s massive $11.9B deal with CoreWeave is a reminder that blockchain-related companies are still shaping the future of tech – even if their focus shifts from crypto mining to AI computing.

Markets remain volatile, especially with inflation data due on Wednesday, but the long-term trend is clear: crypto is becoming more deeply embedded in the global financial system.