Crypto stocks commenced the week facing downward pressure as traders secured profits following a significant rally on Friday within digital assets and wider financial markets.
MARA Holdings (MARA) and Circle (CRCL) topped the declines, dropping around 6% in early trading. Bullish (BLSH) experienced a 5% decrease, while Strategy (MSTR) fell 3%. Other publicly traded entities exposed to crypto, such as Coinbase (COIN), eToro (ETOR), and Robinhood (HOOD), also saw lower prices.
The movements paralleled a general retreat in digital asset valuations. Bitcoin and ether (ETH) both declined markedly from their weekend peaks, down approximately 4% and 5.5%, respectively, in the last 24 hours.
This rally on Friday followed dovish remarks from Federal Reserve Chair Jerome Powell on Friday morning, which briefly enhanced risk appetite across various markets. Crypto prices surged alongside equities as investors interpreted Powell’s comments as an indicator of possible interest rate cuts next month.
In traditional markets, the S&P 500, Nasdaq, and Dow Jones Industrial Average showed little change during the day, as did gold prices and the yield on the U.S. 10-year Treasury Note.
The crypto market is facing macroeconomic pressures: changing signals from the Fed, the strength of the dollar, and reduced risk appetite,” LMAX market strategist Joel Kruger stated. “While [Powell] hinted at rate cuts, the subtlety and less dovish tone left the markets on edge.”
Nvidia’s anticipated earnings report on Wednesday will serve as a crucial sentiment barometer for the broader stock market, with additional attention on Thursday’s GDP and jobless claims data as well as Friday’s core PCE, remarked Jake Ostrovskis, an OTC trader at crypto trading firm Wintermute.
