On Friday, while the broader cryptocurrency market experienced a relatively flat day—Bitcoin hovered around $104,000—there was notable excitement in the world of crypto-related stocks. Investors were betting big on the growing demand for artificial intelligence (AI) computing power, which sent shares of firms involved in crypto mining and data centers soaring between 10% and 20%. This optimism was sparked by a major deal: CoreWeave, a key player in AI infrastructure, signed a $4 billion agreement with OpenAI, the creator of ChatGPT. These companies are often viewed as barometers for AI-driven infrastructure investments, thanks to their extensive data center assets.
CoreWeave itself jumped more than 26%, reflecting investor enthusiasm. The rally extended to Galaxy Digital, which had its debut on the Nasdaq—rising 8% on its first day trading in the U.S. after previously being listed only in Toronto. Galaxy Digital manages crypto investments, trades digital assets, and operates a data center business.
Meanwhile, Coinbase rebounded by 9% after a sharp decline the previous day, which had been triggered by a customer data breach and ongoing regulatory concerns from the U.S. Securities and Exchange Commission. Investors seemed to shrug off the controversy, seeing the setback as overblown.
In the tech and real estate sectors, DeFi Development surged 45% to new highs after announcing a validator operation deal with memecoin BONK and increasing its holdings of SOL tokens.
As for the core cryptocurrencies, Bitcoin remained just above $104,000, up 1.3% over the past 24 hours, while Ethereum gained 2.3%, pushing the price to around $2,580. The broader CoinDesk 20 Index was largely unchanged, although XRP lagged behind after a U.S. judge rejected a settlement proposal between Ripple and the SEC.
On the macroeconomic front, inflation fears intensified. A recent survey from the University of Michigan revealed consumers now expect 1-year inflation to reach 7.3%, the highest since the 1980s, up from 6.5%. Expectations for inflation over the next five to ten years also hit multi-decade highs at 4.6%. Market analysts expressed skepticism about such high forecasts, noting that they seem hard to justify. Interestingly, political affiliations showed stark differences in outlooks, with Republicans predicting more moderate inflation.
Despite these concerns, major U.S. stock indices edged higher in the late trading hours, seemingly unaffected by inflation fears. However, rising inflation expectations could influence future monetary policy—potentially delaying the Federal Reserve’s rate cuts. As one analyst noted, the Fed cares about consumer expectations, and heightened fears of tariff-driven inflation might cause them to hold off on easing measures for now.
Overall, Friday’s market mood was a mix of cautious optimism and anticipation of how macroeconomic pressures will shape the near-term outlook for both traditional and digital assets.
