Crypto Stocks Experience Sell-Off as Traders Take Profits
Crypto stocks faced pressure at the start of the week as traders took profits after a Friday rally in digital assets and financial markets.
- MARA Holdings (MARA) and Circle (CRCL) dropped about 6% in early trading.
- Bullish (BLSH) decreased by 5%, while Strategy (MSTR) fell by 3%.
- Other platforms like Coinbase (COIN), eToro (ETOR), and Robinhood (HOOD) also saw declines.
The pullback corresponded with a decline in digital asset prices, with Bitcoin down approximately 4% and Ether falling around 5.5% from their weekend highs.
This followed a Friday rally initiated by dovish comments from Federal Reserve Chair Jerome Powell, which increased market risk appetite and led to a temporary surge in crypto and stocks.
Traditional markets, including the S&P 500, Nasdaq, and Dow Jones, remained relatively unchanged, alongside gold prices and U.S. 10-year Treasury yields.
Market strategist Joel Kruger noted that the crypto market is influenced by macro factors such as Fed signals, dollar strength, and risk reduction. Despite hints of potential rate cuts, Powell's comments left markets unsettled.
Nvidia's earnings report on Wednesday will serve as a sentiment gauge for the stock market, with additional attention on Thursday's GDP and jobless claims data, and Friday's core PCE report.