Crypto stocks tumble ahead of Friday’s economic conference
Shares of Coinbase and eToro fell more than 5% each. The price of bitcoin fell nearly 3% and the price of Ether fell more than 4%
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Crypto stocks tumbled on Tuesday as investors retreated ahead of this week’s economic conference in Jackson Hole, Wyoming.
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According to CNBC, Coinbase and eToro fell more than 5% each, Robinhood and Bullish dropped more than 6%, crypto services firm Galaxy Digital dropped 11%, and crypto treasury firms Strategy, SharpLink Gaming, Bitmine Immersion, and DeFi Development lost 7%, 8%, 12%, and 15% respectively. Stablecoin issuer Circle slid 5%.
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Bitcoin fell nearly 3% to just over $113,000 and Ether dropped more than 4% to $4,100, according to data from Coin Metrics reviewed by CNBC.
Crypto stocks have soared in recent months after Coinbase joined the S&P 500 index, Circle went public, and President Trump signed the GENIUS Act — a regulatory framework for stablecoins — into law. Wyoming just became the first state in the U.S. to issue its own stablecoin.
But bearish behavior has returned ahead of the Federal Reserve Bank of Kansas City’s annual economic conference in Jackson Hole, Wyoming on Friday. Federal Reserve Chair Jerome Powell is expected to take the stage and signal where policy is headed.
Wall Street overwhelmingly expects the Federal Reserve to cut rates next month, even as some analysts doubt that outcome, Fortune reported.
“With Powell speaking at Jackson Hole, we typically see profit-taking ahead of his remarks,” Satraj Bambra, CEO of hybrid exchange Rails, told CNBC. “Any time there’s communication uncertainty from the Fed, you can generally expect some profit-taking as traders de-risk their positions.”