This week, both stocks and cryptocurrencies have been experiencing a downward trend following the release of discouraging economic reports.

Despite expectations for a more significant sell-off due to the negative economic indicators, the market response has been subdued.

On Friday, cryptocurrencies like Bitcoin and Ether saw a decline, undoing the gains they had earlier in the week, as investors reacted to another inflation report that exceeded forecasts. Bitcoin and Ether continued their downward trajectory that began on Thursday morning.

At the time of reporting, Bitcoin was down by 6%, remaining below the $70,000 mark, while Ether also experienced a 7% drop over 24 hours, trading around $3,700. The impact of the week's unfavorable inflation news has shaken Bitcoin's upward momentum, leading to a retreat below $69,000.

In addition to the crypto market, traditional equities such as the S&P 500 and Nasdaq Composite also faced losses at the start of Friday's trading session, with declines of 0.6% and 1% respectively. Despite earlier gains in the week, recent economic data has tempered bullish sentiments in the stock market.

Economic indicators released this week revealed an unexpected increase in the producer price index (PPI) for February, with a 0.6% rise compared to the anticipated 0.3%. The core PPI also showed a higher-than-expected increase of 0.3% month-over-month. These figures have reduced expectations for rate cuts in the near future, with markets now predicting a high likelihood that the Federal Reserve will maintain interest rates through May.

Looking ahead, investors are awaiting the Federal Reserve's rate decision and updated economic forecasts following the Federal Open Market Committee meeting next Wednesday.