Crypto Stocks Take Steep Hit Compared to Wall Street in End of Week Drawdown

Stocks began the week with a rally, with broad benchmarks such as the S&P 500, NASDAQ Composite and Dow Jones posting gains.

But the rally faltered with a sharp pullback on Friday amid fresh concerns about more rate hikes by the Fed. The pullback was almost enough to wipe out the gains from earlier in the week, but not quite.

Stocks: Strong jobs data could mean more Fed rate hikes

As Joe Rennison and Isabella Simonetti explain in the New York Times, new hiring slowed some in September, but not as much as expected.

The strength of the labor markets to bring in new hires is good economic news, but it could also indicate that the Fed’s inflationary lending on the accomplice regime is still flowing through the economy. As a result, the Fed, based on the new jobs numbers, is expected to continue raising rates. This ultimately affects the prices of crypto stocks.

The latter was pulled down by headwinds, as were share prices. This slowed the previous gains made by major cryptocurrencies.

Crypto Stocks Taken for Wild Ride by Headwind

Silvergate Corporation (NYSE: SI ), a bank that serves crypto companies, fell nearly 5% on Friday. Core Scientific (NASDAQ: CORZ ) fell 13% on the day. Hut 8 Mining Corp (TSE: HUT ) fell nearly 7% on Friday. Marathon Digital Holdings (NASDAQ: MARA ) fell more than 14%. Riot (NASDAQ: RIOT ) fell 8%. HIVE (NASDAQ: HIVE ) fell 6%.

Compare this to the benchmark averages. The Dow Jones fell, but only by 2%. The S&P 500 retreated with a steeper loss of 2.8% on the day. The technology NASDAQ, with more high-risk and growth stocks, ended the worst of the three Friday, losing 3.8%.

All crypto stocks are considered riskier than riskier tech stocks, with a heavy weighting in the NASDAQ composite. So their market segment bore the brunt, percentage-wise, of a risk-free macro market on Friday. However, crypto stocks also saw steeper gains earlier in the week, when stocks and cryptocurrencies were rallying.


Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off fees on Binance Futures in your first month (terms).

PrimeXBT Special Offer – Use this link to sign up and enter code POTATO50 to receive up to $7,000 in your deposits.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *