Crypto Stocks Drop as Weekend Price Surge Fades
Stocks tied to digital assets slid on Monday after sharp declines in bitcoin and ether erased much of the weekend’s momentum.
MARA Holdings (MARA) and Circle (CRCL) led losses in the sector, each down about 6% in early U.S. trading. Bullish (BLSH) dropped 5%, while Strategy (MSTR) slipped 3%. Coinbase (COIN), Robinhood (HOOD), and eToro (ETOR) also traded in the red.
The pullback mirrored a reversal across crypto markets, where bitcoin (BTC) was down about 4% over the past 24 hours and ether (ETH) shed 5.5%, both retreating from Friday’s highs.
That rally had been sparked by comments from Federal Reserve Chair Jerome Powell, which investors initially interpreted as paving the way for rate cuts as soon as next month. But with Powell’s tone less dovish than some hoped, traders quickly scaled back their optimism.
“The market is struggling with macro crosscurrents — Fed uncertainty, dollar strength, and a broader appetite to reduce risk,” said Joel Kruger, strategist at LMAX.
Elsewhere, U.S. benchmarks including the S&P 500, Dow Jones Industrial Average and Nasdaq were little changed, with gold and 10-year Treasury yields also flat.
Investors are now awaiting Nvidia’s earnings midweek, followed by Thursday’s GDP and jobless claims reports and Friday’s PCE inflation reading — all of which could set the tone for risk assets heading into September.
