Cryptocurrency markets faced a sharp selloff after stronger-than-expected U.S. inflation data prompted investors to reprice the possibility of additional interest rate hikes from the Federal Reserve.
According to market data, Bitcoin fell 5.7% during the week, while Ethereum dropped 10.2%, marking one of the strongest recent corrections across the crypto market.
Bitcoin ETFs also recorded more than $1 billion in outflows as investors rotated toward defensive assets amid growing concerns over prolonged monetary tightening in the United States.
Weekly cross-asset performance data showed digital assets ranking among the weakest-performing asset classes during Week 20 of 2026, as volatility increased across global markets and pressure intensified on risk-sensitive investments.
Analysts believe persistent inflation strength could continue weighing on both crypto and equity markets, particularly if upcoming economic data reinforces expectations for a more hawkish Federal Reserve stance.