Crypto Mining Stocks Drop Amid Fed Economic Warnings

US crypto mining stocks fell sharply on May 28 as the Federal Reserve’s minutes revealed economic uncertainty. Meanwhile, the broader crypto market displayed resilience with Bitcoin trading slightly down. Stocks like Riot, CleanSpark, and Marathon saw significant declines, reflecting investor anxiety amid upcoming interest rate decisions and tensions between Trump and the Fed.

U.S. crypto mining stocks suffered losses at the close of trading on May 28, following the publication of minutes from the Federal Reserve’s recent meeting. These minutes highlighted increasing uncertainty regarding the economic outlook, leading to drops in major crypto mining stocks. Despite this turbulence in stocks, the broader crypto market remained largely unaffected, which is a notable observation amidst the turmoil.

The minutes from the Federal Open Market Committee meeting, which took place on May 6 and 7, indicated that the Fed may encounter challenging trade-offs if inflation persists while growth and employment prospects decline. The central bank opted to maintain interest rates at a range between 4.25% and 4.50%, citing rising economic uncertainty that could result in higher unemployment and inflation risks.

The impact on individual crypto mining firms was significant, with Riot Platforms (RIOT) closing down by 8.32%, CleanSpark (CLSK) dropping 7.61%, and Marathon Holdings (MARA) ending the day down 9.61%, as reported by Google Finance. The overall atmosphere for crypto-related stocks was bleak, as even Coinbase (COIN) saw a decline of 4.55%. Meanwhile, MicroStrategy (MSTR) continued its downward trajectory, falling an additional 2.14% amid a class-action lawsuit alleging misrepresentation in Bitcoin investment disclosures.

In a broader market context, the S&P 500 index saw a modest dip of 0.56% during the same trading day. Concurrently, tensions were reportedly rising between President Donald Trump and the Federal Reserve. Trump has publicly urged Fed Chair Jerome Powell to cut rates more aggressively, even stating, “Powell’s termination cannot come fast enough!”

On the crypto front, Bitcoin showed relative stability. As of the report, Bitcoin had slipped by 0.90% over the previous 24 hours, trading at around $107,942. The overall market sentiment appeared to improve somewhat, with the Crypto Fear & Greed Index increasing by three points to a reading of 74, indicating a shift further into the “Greed” territory.

Looking ahead, the Federal Reserve is expected to announce its next interest rate decision on June 18, and current forecasts suggest that 97.8% of market players anticipate rates to stay the same, according to the CME FedWatch Tool. It’s worth noting that readers should approach investment with caution and conduct thorough research, as trading in financial markets carries inherent risks.

This article does not provide specific investment advice or recommendations, underscoring the importance of individual due diligence when making financial decisions.