Crypto-related equities experienced notable declines on Tuesday as market participants adopted a cautious stance ahead of the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming. Major digital asset platforms such as Coinbase and eToro saw their share prices drop by over 5%, while Robinhood and Bullish fell more than 6%. Galaxy Digital, a firm offering crypto financial services, declined by 11%, and several blockchain and treasury-focused companies including Strategy, SharpLink Gaming, Bitmine Immersion, and DeFi Development registered losses between 7% and 15%. Circle, known for issuing the USDC stablecoin, slipped by 5%.
According to Coin Metrics data cited by CNBC, the price of bitcoin dipped nearly 3% to just above $113,000, while ether dropped over 4% to $4,100. These movements reflect broader risk-off sentiment in the digital asset space amid anticipation of remarks from Federal Reserve Chair Jerome Powell, who is expected to outline potential shifts in monetary policy.
The recent pullback comes after a strong upward trend for crypto-linked stocks, fueled by regulatory advancements and market milestones. Coinbase’s inclusion in the S&P 500, Circle’s public listing, and the enactment of the GENIUS Act—providing a legal framework for stablecoins under President Trump—have all contributed to investor optimism. Additionally, Wyoming made history by becoming the first U.S. state to issue its own government-backed stablecoin.
However, ahead of the Kansas City Fed’s high-profile event, traders are adjusting positions to reduce exposure. Satraj Bambra, CEO of hybrid trading platform Rails, noted that uncertainty around central bank communication often leads to profit-taking. “When Powell speaks at Jackson Hole, we typically see investors locking in gains before the speech,” Bambra explained to CNBC. “Any ambiguity from the Fed tends to prompt a reassessment of risk across portfolios.”
Market watchers widely anticipate a rate cut by the Fed in the coming month, though some analysts remain skeptical about the timing or necessity of such a move, according to Fortune. As macroeconomic signals remain mixed, investors are closely monitoring policy cues that could influence liquidity conditions and risk appetite in financial markets.
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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.”
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