Cryptocurrency-related stocks have tumbled on Thursday as Bitcoin price continued to slip towards $28,000. The miners such as Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 Mining (HUT) have undergone a significant price downfall, registering declines of about 10%, 9% and 8% respectively. Additionally, leading crypto exchange, Coinbase (COIN) and MicroStrategy (MSTR), with 140,000 Bitcoins stash have also slumped by over 6%.

The recent drop in the crypto price can be attributed to the surprise announcement by the U.K. that their consumer prices have unexpectedly held at more than 10%. This affirmation further restored the impression in the minds of many people that the Western central banks were likely to step up the rate increase game.

Besides this, the U.S. stock market experienced a further decrease on account of weak economic data. Initial jobless claims increased to 245,000, which was 5,000 in excess of the expectation of 240,000. Moreover, Philadelphia Fed Manufacturing Index for April appeared at -31.30 instead of the anticipated -19.2. To add to the woes, existing home sales touched -2.4% in March rather than the 5% forecast.

The next meeting of the Federal Open Market Committee (FOMC) is due in two weeks and at present, fx traders have forecasted that the chances of a 25-basis point rate hike are almost completely certain. This figure was earlier in near 70% probability one week back.

To sum up, the fall in Bitcoin price and the following descent in crypto-linked stocks grab the investor’s attention as the U.K.’s inflationary pressures boosted their rate hike prospects and U.S. economic data recorded a notable decline.



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