Crypto Slides as Bitcoin Tests $86K; JPMorgan Lifts Miners on HPC Pivot; Futures Firm on Fed-Cut Bets
Risk sentiment stayed fragile across digital assets on Friday as Bitcoin slipped toward $86,000, extending a four-week losing streak and keeping traders focused on $80,000 as a pivotal support. XRP sought to decouple on ETF-driven interest, with bulls eyeing a move back above $2.00, while U.S. equity futures firmed on rising expectations of Federal Reserve rate cuts into year-end.
Bitcoin Weakness Tempers Crypto Risk Appetite; XRP Bulls Eye $2.00 Bitcoin’s pullback dragged broader crypto benchmarks, with the CoinDesk 20 Index down about 2%, reflecting a reset in risk appetite and cautious positioning after a month-long drawdown. Market participants flagged $80,000 as the key downside level that would likely dictate near-term liquidity flows and FX volatility within the crypto complex.
XRP outperformed pockets of the market amid renewed ETF-related demand narratives and improving on-exchange liquidity. Traders say a break and hold above $2.00 would be needed to confirm momentum, though Bitcoin’s downside skew remains a headwind for sustained gains across altcoins.
JPMorgan Turns Constructive on Bitcoin Miners Pivoting to HPC JPMorgan upgraded Cipher Mining (CIFR) and CleanSpark (CLSK), citing a strategic shift toward high-performance computing (HPC) and AI-adjacent revenue streams. The move supported miner shares, with analysts arguing that diversification beyond pure Bitcoin mining could compress risk premia and warrant higher multiples as power assets and data-center exposure scale.
The upgrades come as valuation dispersion widens across the crypto equity space. Companies aligned with AI/HPC capacity and stable power contracts are attracting interest versus pure-play miners tethered to spot BTC volatility and hash-price compression.
Futures Edge Higher on Rate-Cut Hopes; Chip Stocks Bid U.S. stock-index futures advanced as traders leaned into another leg of monetary easing later this year, bolstering cyclicals and semiconductors. The rate backdrop continues to anchor equity risk premia: expectations that the Fed can cut without reaccelerating inflation are improving market breadth, though a softening crypto tape underscores uneven risk transmission across asset classes.
Earnings and Valuation Watch: Standouts and Laggards – FTAI Aviation rallied after reporting 43.9% revenue growth and an 82.4% surge in EPS, trading at roughly 25.4x P/E. Margin expansion and parts availability remain key to the bull case. – Ross Stores (ROST) jumped about 8% following stronger-than-expected results, while Veeva Systems (VEEV) fell roughly 9% on a margin miss, highlighting sensitivity to guidance and operating leverage. – Boise Cascade (BCC) and Werner Enterprises (WERN) faced sales declines and elevated multiples, pressuring sentiment in materials and transport pockets. – Marqeta (MQ) posted a 12.1% sales decline despite a robust 70.6% gross margin, underscoring top-line fragility in fintech. – LGI Homes (LGIH) reported a 10.4% backlog drop with shares trading near 12.6x P/E; order trends remain the swing factor for housing cyclicals. – Republic Services (RSG) continued to execute defensively, with 10.2% revenue growth and an 18.9% margin supporting premium valuation.
Small-Cap Scan: Selectivity Over Beta Small caps remain high beta with wide dispersion. Global Industrial (GIC) showed 4.9% revenue growth, while REV Group (REVG) posted a 3.4% sales decline and Comerica (CMA) registered a 23% EPS drop, signaling mixed operating momentum across industrials and regional banks. Stock picking, balance-sheet discipline, and capital allocation remain paramount as liquidity tightens outside mega-cap tech.
Market Highlights – Bitcoin slips toward $86,000; CoinDesk 20 down ~2%; four-week losing streak persists with $80,000 in focus. – XRP attempts to reclaim $2.00 on ETF-related demand, but BTC weakness caps upside. – JPMorgan upgrades Cipher Mining (CIFR) and CleanSpark (CLSK) on AI/HPC pivot, boosting crypto miners. – U.S. futures advance on rate-cut hopes; semis lead early risk-on tone. – FTAI Aviation posts 43.9% revenue growth and 82.4% EPS surge; trades at ~25.4x P/E. – Ross Stores up ~8% post-earnings; Veeva down ~9% on margin disappointment. – Republic Services delivers 10.2% revenue growth with an 18.9% margin; steady defensive bid.
Quick Q&A Q: What could drive XRP above $2.00? A: Sustained ETF inflows, stronger risk appetite across crypto, and a stabilization in Bitcoin could catalyze a clean break and hold above $2.00.
Q: Why did JPMorgan upgrade CIFR and CLSK? A: The bank cited miners’ pivot toward high-performance computing and AI-related data-center demand, which can diversify revenue and support multiple expansion.
Q: What level is critical for Bitcoin near term? A: $80,000 is the key support many traders are watching; a decisive break could accelerate de-risking, while a hold may stabilize flows.
Q: What’s moving U.S. futures today? A: Rising odds of Fed rate cuts into year-end and supportive earnings from select retailers and industrials are underpinning futures, according to BPayNews analysis.
