The crypto market extended its decline on Friday as a global risk-off move swept across financial markets, dragging down Bitcoin, Ethereum, XRP and most major altcoins.
The total cryptocurrency market capitalization fell 2.4% over the past 24 hours to around $2.16 trillion, while liquidations topped $335 million.
Bitcoin (BTC) slipped below $63,000, trading near $62,600 after falling more than 3% in the past 24 hours. Ethereum (ETH) dropped to around $1,856, while XRP traded near $1.06, extending losses alongside the broader market.
Other large-cap cryptocurrencies also moved lower. Solana (SOL) fell to about $72.90, Dogecoin (DOGE) slipped below $0.07, and Hyperliquid (HYPE) declined to around $54.40. Even traditionally resilient assets like BNB and TRON posted losses.
The sell-off was driven primarily by macroeconomic developments rather than crypto-specific news. According to market reports, the Federal Reserve and the Bank of Japan both left interest rates unchanged this week. The decisions reinforced expectations that interest rates could stay elevated for longer, reducing appetite for risk assets such as cryptocurrencies.
Market sentiment worsened after reports suggested US authorities could intervene in currency markets to support the Japanese yen. Following the reports, the S&P 500 reversed sharply, erasing nearly $1 trillion in market value within about 40 minutes as investors rushed to unwind positions linked to the yen carry trade.
The same risk-off mood quickly spread into cryptocurrencies.
The strengthening yen has renewed concerns about the unwinding of the yen carry trade, a strategy where investors borrow cheaply in Japan to invest in higher-return assets elsewhere. As the yen rises, many of those leveraged positions become less attractive, forcing investors to reduce exposure across equities and digital assets simultaneously.
That has increased selling pressure on Bitcoin and the broader crypto market.
Beyond macro concerns, several altcoins also came under pressure after strong recent rallies.
Traders booked profits across higher-risk tokens following weeks of gains, while sentiment was further weakened by reports of a $40 million Bitcoin theft involving Coldcard wallets, adding another layer of caution across the market.
Markets are now turning their attention to upcoming US economic data, particularly the Non-Farm Payrolls report due next week.
A stronger-than-expected jobs report could reinforce expectations that the Federal Reserve will keep interest rates higher for longer, potentially extending pressure on cryptocurrencies.
For now, Bitcoin remains the key asset to watch. If it stabilizes, broader crypto sentiment could improve. However, continued macro uncertainty is likely to keep volatility elevated across Bitcoin, Ethereum, XRP and the wider digital asset market.
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