Crypto stocks battered as Nasdaq enters correction in $17 trillion market rout
Crypto stocks are getting hit hard Friday as weakness in U.S.
equities rippled through high-risk assets, driving bitcoin BTC $ 66,621.90 below $66,000.
Crypto exchange Coinbase (COIN) and digital asset conglomerate Galaxy (GLXY) dropped nearly 7%, while exchange Gemini (GEMI) slid almost 9%, marking one of the steepest losses in the group.
Crypto-friendly broker Robinhood (HOOD) also fell nearly 6% as increasing its stock buyback pace offered little help in arresting the downtrend.
Bitcoin-linked balance sheet plays also moved lower.
Strategy (MSTR) and Twenty One Capital (XXI) plunged about 6%.
Ethereum-focused treasury names such as Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) were down roughly 5%.
Miners — many of which trade as leveraged bets on both bitcoin and AI infrastructure — extended their declines.
Riot Platforms (RIOT), CleanSpark (CLSK), IREN (IREN), HIVE Digital (HIVE) and Hut 8 (HUT) all posted 5%-8% losses.
Even MARA (MARA) and Bitdeer (BTDR), which outperformed Thursday, have given back all their gains and were down 6% and 8%, respectively, joining the sector-wide plunge.
The Federal Reserve faces an increasingly complicated backdrop, weighing renewed inflation pressure from rising oil prices against signs of a deteriorating labor market.
Richmond Fed President Tom Barkin warned that higher gas costs could dent consumer spending while describing hiring conditions as "fragile." Meanwhile, Philadelphia Fed President Anna Paulson said the war in Iran created "new risks to both inflation and growth." The 10-year Treasury bond yield, which hit nearly 4.5% earlier Friday, erased today's rise following the central bankers' remarks.
The two-year yield, which is more sensitive to Fed policy, fell all the way back to 3.91% after earlier rising to 4.03%.
Still, investors have turned from predominantly expecting rate cuts this year to consider the central bank hiking rates in face of rising inflation.
The selloff over the past months has been broad across equities, with roughly $17 trillion in market cap wiped out from peak levels across the Magnificent Seven — the seven largest tech stocks, including Nvidia (NVDA), Google (GOOG) and Microsoft (MSFT) — gold, silver, and bitcoin BTC $ 66,621.90 .
