Cryptocurrency stocks crash as Bitcoin falls below $93K amid Fed signals

Shares of cryptocurrency-related companies fell sharply on Thursday, reflecting volatility in the digital asset market and a pair of somewhat bullish Federal Reserve signals. Microstrategy (MSTR, Financial) is down 5.5%, as other noteworthy declines include Riot Platforms (Riot control, financial), Coinbase (currency, financial), Clean Spark (Klask, financial).

Bitcoin, which is down 10% from its recent peak, just above $108,000, sold for less than $92,149 in Friday morning trading. What’s more, smaller tokens like Ether and Dogecoin saw steeper declines. Analysts say the contraction is linked to a decline in appetite for speculation in response to signs of less accommodative monetary policy in the United States.

According to Bloomberg data, the $680 million outflow, the largest withdrawal of Bitcoin in a single day from US exchange-traded funds that invest directly in Bitcoin, was also the 15th straight day of inflows and helped investor sentiment. However, this raises caution about outflows as investors scale back expectations for speculative crypto assets.

Pressure is mounting on cryptocurrency-related stocks following recent guidance from the Federal Reserve, which dashed hopes for imminent interest rate cuts. As Bitcoin continues to cycle between gains and losses, the cryptocurrency has helped pull the rest of the market higher, leaving very weak companies exposed.

Although we cannot be sure exactly what the implications of this market recalibration will be for crypto-focused companies, they will closely monitor the cryptocurrency sector’s response to changing asset values ​​and the rollback of monetary policies.

This article first appeared on Gorovox.