Weekly Recap: Crypto and Stocks End the Week Deep in the Red as Oil Prices Surge

TLDR

• Bitcoin dropped from $75,000 to $66,000 this week; Ethereum fell below the $2,000 support level
• All three major U.S. stock indices entered correction territory, with the S&P 500 logging its longest losing streak since 2022
• Oil surged past $100 a barrel as Middle East conflict intensified, pushing investors into a risk-off mode
• Coinbase launched crypto-backed mortgages, while Tether hired KPMG for a long-awaited audit
• White House Crypto Czar David Sacks stepped down after one year in the role

It was a tough week across financial markets. Crypto and stocks both sold off heavily as oil prices surged and investors pulled back from risk assets.

Bitcoin fell from a weekly high of $75,000 to a low of $66,000 by Friday, March 27. Ethereum dropped back below the $2,000 mark, a key support level that traders watch closely.

Solana and XRP also ended the week deep in the red. The broader crypto market tracked the sell-off in equities as fear spread across financial markets.

On the stock side, the S&P 500 fell for a fifth straight week, its longest losing streak since 2022. The Dow Jones Industrial Average entered correction territory, down more than 10% from its recent high.

The Nasdaq dropped 2.1% on Friday alone, sliding further into correction. The “Magnificent Seven” megacap tech stocks lost over $330 billion in market cap in a single day.

Oil was a key driver of the sell-off. Brent crude traded above $106 a barrel and West Texas Intermediate topped $100, as attacks across the Middle East raised fears the conflict could extend well into April.

President Trump extended his deadline for Iran by 10 days, giving the country until April 6 to meet U.S. demands or face strikes on its power plants. Markets remained unsettled despite the extension.

Crypto Industry Stories That Moved Markets

Coinbase announced it is offering cryptocurrency-backed mortgages in the U.S. The exchange is partnering with Better Home & Finance to let buyers use Bitcoin as a down payment on a home, with government backing for the program.

Stablecoin issuer Tether hired accounting firm KPMG to audit its $185 billion USDT stablecoin. The move is part of Tether’s push into the U.S. market. The news sent shares of Circle Internet Group down 24% for the week.

The New York Stock Exchange’s parent company, Intercontinental Exchange, invested $600 million in prediction market Polymarket. The deal gives Polymarket capital to expand as traditional market operators move into the space.

Washington and Regulation

White House Crypto Czar David Sacks stepped down from the role after one year. Sacks oversaw early White House crypto policy, including passage of the GENIUS Act, and has moved to the President’s Council of Advisors on Science and Technology. No replacement has been named.

Prediction market Kalshi saw its valuation double to $22 billion in its latest funding round, up from $11 billion in December. The funding came the same week Arizona charged Kalshi with 20 criminal counts, accusing it of running an illegal gambling operation.

Nearly $15 billion in Bitcoin options contracts expired on Deribit on March 27, representing 40% of total open interest on the exchange. A similar $19 billion expiration last September is linked to the start of Bitcoin’s current downturn, which has now reached 40% since October.

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