Stocks, Crypto Plummet as Oil Prices Surge; Coinbase Launches Mortgages, Tether Hires KPMG

TLDR

• Bitcoin retreated from $75,000 to $66,000 this week, while Ethereum dipped below the $2,000 support threshold.
• All three primary U.S. stock indices have entered correction territory, with the S&P 500 experiencing its most prolonged losing streak since 2022.
• Escalating tensions in the Middle East drove oil prices above $100 per barrel, prompting investors to adopt a risk-averse stance.
• Coinbase introduced crypto-collateralized mortgages, and Tether engaged KPMG to conduct a long-anticipated audit.
• White House Crypto Czar David Sacks has resigned after serving one year in the position.

(SeaPRwire) –   Financial markets faced a challenging week, characterized by significant sell-offs in both stocks and cryptocurrencies as rising oil prices caused investors to retreat from risk-heavy assets.

Bitcoin’s value declined from a weekly peak of $75,000 to a low of $66,000 by Friday, March 27. Meanwhile, Ethereum slipped below the $2,000 level, a critical support point closely monitored by market participants.

Both Solana and XRP also finished the week with substantial losses. The broader digital asset market mirrored the equity sell-off as apprehension permeated the financial landscape.

In the stock market, the S&P 500 recorded its fifth consecutive weekly decline, marking its longest losing streak since 2022. The Dow Jones Industrial Average officially entered correction territory, having fallen more than 10% from its recent peak.

The Nasdaq plummeted 2.1% on Friday alone, deepening its correction. The “Magnificent Seven” major technology stocks saw over $330 billion in market capitalization erased in a single session.

Rising oil prices served as a primary catalyst for the market downturn. Brent crude traded above $106 per barrel, while West Texas Intermediate surpassed $100, driven by concerns that Middle Eastern conflicts could persist well into April.

President Trump has granted Iran a 10-day extension to comply with U.S. demands, warning of potential strikes on power infrastructure if requirements are not met by April 6. Despite this reprieve, market sentiment remains volatile.

Crypto Industry Stories That Moved Markets

Coinbase has revealed plans to offer cryptocurrency-backed mortgages within the United States. Through a partnership with Better Home & Finance, the exchange will allow homebuyers to utilize Bitcoin as a down payment, supported by government backing.

Stablecoin issuer Tether has appointed accounting firm KPMG to audit its $185 billion USDT stablecoin reserves, a strategic move to facilitate its expansion into the U.S. market. Following this announcement, shares of Circle Internet Group fell 24% for the week.

The Intercontinental Exchange, parent company of the New York Stock Exchange, has invested $600 million into the prediction market platform Polymarket. This capital injection will support Polymarket’s growth as traditional financial institutions increasingly enter the sector.

Washington and Regulation

White House Crypto Czar David Sacks has stepped down after a one-year tenure. Sacks, who managed early White House digital asset policy and the implementation of the GENIUS Act, has transitioned to the President’s Council of Advisors on Science and Technology. No successor has been announced.

The prediction market Kalshi saw its valuation climb to $22 billion in its most recent funding round, doubling from its $11 billion valuation in December. This funding news coincided with Arizona filing 20 criminal charges against Kalshi, alleging the operation of an illegal gambling business.

Approximately $15 billion in Bitcoin options contracts expired on Deribit on March 27, accounting for 40% of the exchange’s total open interest. A comparable $19 billion expiration last September was associated with the onset of the current Bitcoin downturn, which has now seen a 40% decline since October.