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Bitcoin Falls as Microsoft Leads Tech Selloff After Earnings

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Stocks Little Changed After Fed Decision

Bitcoin remained under pressure after hitting a two-month low overnight as disappointing earnings from Microsoft fueled a wider selloff in tech stocks.

“We are not in the AI bubble camp, but we do believe that the market will question the return on capital expenditure from the tech companies,” Jefferies economist Mohit Kumar said in a note.

Meanwhile, reports indicate President Donald Trump could nominate Kevin Warsh as Federal Reserve Chair. Warsh is unlikely to pursue aggressive interest-rate cuts beyond what economic fundamentals suggest, Kumar said.

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Crypto World

Bitcoin slides to $72,300 as Hormuz conflict and hot inflation hit risk assets

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Bitcoin Core maintainers face shake-up as Gloria Zhao revokes PGP key

Bitcoin slips to $72.3k as the Strait of Hormuz conflict spikes oil, U.S. inflation runs hot, and traders slash Fed cut bets, pressuring crypto and stocks.

Cryptocurrency markets came under sharp pressure on Wednesday as two converging macro forces — an escalating military conflict centered on the Strait of Hormuz and a worse-than-expected U.S. inflation print — sent Bitcoin tumbling to approximately $72,300, a 24-hour decline of roughly 2%. Ethereum, Solana, and XRP each fell close to 3%, dragging the broader digital asset market into a broad risk-off retreat that also hit equity futures.

The geopolitical backdrop has been deteriorating since late February, when U.S. and Israeli forces launched coordinated strikes on Iran — killing Supreme Leader Ali Khamenei — triggering retaliatory missile campaigns across Gulf states and an effective closure of the Strait of Hormuz by Iran’s Islamic Revolutionary Guard Corps. As of mid-March, tanker traffic through the strait had dropped by approximately 70%, with over 150 vessels anchored outside the chokepoint. The IRGC has since confirmed more than 21 attacks on merchant ships, and Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, has vowed to maintain the blockade, with the IRGC navy pledging to deliver “the harshest blows” to enforce it.

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The disruption of the Strait of Hormuz — through which roughly 15% of global oil supply transits — has sent energy prices soaring. On Wednesday, Brent crude broke above $104 per barrel, rising 3.22% intraday, while WTI crossed $97 per barrel. The spike compounds an already difficult inflation environment.

Data released Wednesday morning by the U.S. Bureau of Labor Statistics showed that the Producer Price Index rose 0.7% month-on-month in February, more than double the consensus forecast of 0.3%. Core PPI — which strips out food and energy — climbed 0.5% MoM against an expected 0.3%, and rose 3.9% year-on-year. Critically, these figures do not yet reflect the surge in oil prices triggered by the Hormuz closure, meaning the inflationary pipeline is likely to worsen in coming months.

The report follows a February CPI reading that held steady at 2.4% year-on-year, but with core PCE — the Federal Reserve’s preferred gauge — estimated at approximately 3.1%, well above the central bank’s 2% target. Capital Economics noted ahead of Wednesday’s PPI release that preliminary estimates already pointed to a “much firmer rise in the core PCE deflator.”

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For markets, the implications are stark. Traders have now materially reduced bets on Federal Reserve rate cuts in 2026, and S&P 500 and Nasdaq 100 futures widened their declines to 0.5% following the PPI release. The CBOE Volatility Index (VIX) climbed 1.22 points to 23.59, reflecting rising investor anxiety ahead of the Fed’s rate decision later this week.

Bitcoin, which had been testing resistance near $74,000 in recent sessions, proved unable to hold those levels against the twin headwinds. The asset’s correlation with risk assets such as equities has reasserted itself sharply, undermining near-term narratives around its use as an inflation hedge. The Fed’s policy meeting and Chair Powell’s anticipated remarks on growth risks and price stability will now be closely watched for any signal that could shift the current trajectory.

With oil prices elevated, inflation proving stickier than models anticipated, and a military conflict showing no signs of de-escalation, the path of least resistance for risk assets — crypto included — remains uncertain at best.

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Algorand Foundation Cuts Workforce By 25% Amid Market Uncertainty

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Cryptocurrencies, Business, Algorand

The Algorand Foundation, the organization behind the Algorand layer-1 blockchain, said it had made the “difficult decision” to reduce its headcount by 25% on Wednesday, blaming the crypto slump and wider uncertainty.

“This decision was not taken lightly and is in response to the uncertain global macro environment as well as the broader downturn in crypto markets,” the Algorand Foundation said in an X post.

The Algorand Foundation said the affected employees were “best-in-class contributors” and described the decision as “incredibly tough,” adding that it would support staff through the transition.

“We believe that we now have a more sustainable alignment of Algorand Foundation resources with the protocol’s long-term business, technology, and ecosystem priorities,” the foundation added.

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Algorand Foundation is gearing up for a big year ahead

The staff cuts come as the Algorand Foundation prepares for several milestones for the year ahead, including the next major release of its developer toolkit AlgoKit, the launch of the user-friendly Rocca Wallet, the development of a more robust commercial toolkit, and a focus on post-quantum security.

Cryptocurrencies, Business, Algorand
Source: Nik Bougalis

The Algorand Foundation said in its roadmap progress report in December 2025 that it made “significant progress” toward greater decentralization, having increased Algorand’s (ALGO) online stake from approximately 1 billion to 2 billion ALGO in just over a year.

The crypto industry has a history of cutting staff during market downturns. Bitcoin (BTC) is trading at $71,067 — 44% below its October all-time high of $126,000 — after falling as low as $60,000 on Feb. 6, according to CoinMarketCap.

Related: SEC Chair explains why NFTs fall outside of securities laws

Bullish CEO Tom Farley recently predicted that the crypto sector could see more projects acquired by larger firms in the coming months, potentially leading to redundancies, layoffs, and internal restructuring.

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Meanwhile, on Monday, blockchain data provider Messari announced a series of layoffs while its CEO, Eric Turner, stepped down to make way for the company’s “next phase” as an AI-first company. 

During the 2022 bear market, Coinbase reduced its workforce by around 18% as Bitcoin hit two-year lows near $21,000. Around the same time, Gemini, the trading platform founded by the Winklevoss twins, reportedly cut 10% of its staff amid the broader crypto slump.

More layoffs could follow if history repeats, with veteran trader Peter Brandt predicting the crypto market may not reach its bottom until the third quarter of this year. 

Magazine: Big Questions: Can Bitcoin save you from the dreaded Cantillon Effect?

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