Crypto Mining Stocks took a steep hit this week following the release of the Federal Reserve’s May meeting minutes. The central bank’s decision to keep interest rates steady between 4.25% and 4.50% wasn’t the issue—it was the accompanying warning about rising economic uncertainty and the difficulty of balancing inflation with growth that spooked investors.
The reaction was swift. Riot Platforms sank more than 8%, CleanSpark fell 7.6%, and Marathon Digital plummeted nearly 10%. The Fed’s continued hawkish tone, combined with fears of a cooling job market, prompted a broad sell-off in risk-sensitive assets, with crypto-exposed stocks leading the retreat.
Coinbase, Strategy Also Under Pressure
The downturn wasn’t limited to mining companies. Coinbase shares dropped 4.55%, driven by the broader market’s risk-off stance and shifting expectations around monetary policy. Meanwhile, Strategy Inc. extended its losing streak with a 2.14% decline, further pressured by a class-action lawsuit accusing the firm of misrepresenting the nature and risks of its Bitcoin-related investments.
These declines underscore a growing disconnect between crypto assets and their equity counterparts. While share prices of crypto-related firms remain highly sensitive to macroeconomic and legal signals, actual crypto assets like Bitcoin have shown remarkable resilience.
Bitcoin Shrugs Off Politics and Economic Angst
Despite heightened political tensions and monetary uncertainty, Bitcoin appears increasingly insulated from traditional market shocks. As political rhetoric escalated—most notably Donald Trump’s scathing comment on April 17 that “Powell’s termination cannot come fast enough!”—Bitcoin barely reacted.
Also Read: Bitcoin (BTC) Rally Continues: $110K Resistance in Sight
At press time, BTC traded at $108,624, posting a mild 0.73% gain for the day. Technical indicators reinforce this calm: the RSI stood at a neutral 63, while OBV showed signs of slow accumulation. The muted response may reflect growing investor confidence in Bitcoin’s long-term narrative—or fatigue with U.S. political theatrics.
As the Fed signals a bumpy road ahead, Bitcoin’s steady footing offers a sharp contrast to the volatility gripping publicly traded crypto firms.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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