The "digital gold" that was declining while the real gold exploded in price is currently trading around $76,000, a steep 40% correction from its October 2025 all-time high of $126,080. Key drivers of the decline include a pervasive risk-off sentiment, and Bitcoin is considered a high-risk asset. Sharp sell-offs in precious metals such as gold and silver further undermine Bitcoin's role as a debasement hedge amid ongoing Middle East conflicts and threats of new tariffs. The nomination of Kevin Warsh as Fed chair raises fears of tighter monetary policy, with substantial outflows from Bitcoin ETFs already underway, exceeding $1.7 billion in recent weeks, with year-to-date totals hitting $1 billion, and cascading liquidations totalling over $2.5 billion, exacerbated by thin weekend liquidity and technical breakdowns below key supports like $80,000 and April 2025 lows. This volatility has erased more than $1 trillion from Bitcoin's market cap, with analysts suggesting a potential bottom may be forming around $74,000–$76,000 if aggressive buying emerges. Historically, February trends show an average 14.3% gain for Bitcoin, potentially driving a recovery to $90,000–$105,000 by month's end if macro conditions ease, with longer-term optimism for a 55% surge to $150,000 in 2026 hinging on institutional accumulation and narrative shifts.
EQUITY
Tech sectors are quickly falling out of favour, dragging the whole market along with its high market cap concentration. Nvidia, Broadcom, and Micron are plunging 4–6% with rising doubt regarding the scale and timing of large AI investments. The rotation was accelerated by rising long-term U.S. yields that increased discount rates for growth assets and profit-taking following January's outsized gains.
GOLD
Gold price climbed back above $5,000 from a sharp pullback earlier late last month after CME initial margin increases were anticipated that are effective Monday, with Tuesday's 6.1% surge marking the biggest daily gain in dollar terms. Dip buyers stepped in aggressively after the steep correction, while heightened geopolitical tensions continue to support gold's safe-haven appeal.
OIL
Brent crude gained 2% toward $68 per barrel as Middle East tension escalated following a U.S. military action that downed an Iranian drone near an aircraft carrier in the Arabian Sea and Iranian gunboats harassing a U.S.-flagged tanker in the Strait of Hormuz. Additional support came from American Petroleum Institute data showing U.S. crude inventories fell 11.1 million barrels last week, contrary to expectations of a build. OPEC+ awaits clearer demand signals before deciding on March 1 whether to resume output increases.
CURRENCY
The dollar shows signs of losing steam, with the DXY index dipping slightly and consolidating after a 1.5% rally in two days built on positive U.S. manufacturing data and Fed chair nominee Kevin Warsh's dovish tendencies, limited by a brief government shutdown that delayed key labour market reports, halting the dollar's momentum. The dollar held firm against the yen on speculation that Japan's ruling party would push aggressive fiscal stimulus.
