US Crypto Mining Stocks Plummet Following Federal Reserve’s Economic Outlook
The US crypto mining stocks took a big hit on the close of May 28 trading, following the discharge of minutes from the Federal Reserve’s meeting. The minutes revealed the Fed’s growing uncertainty in regards to the country’s economic outlook, resulting in a decline in stock prices. Despite this, the crypto market remained relatively unscathed.
Economic Uncertainty and Its Impact on Stocks
The Federal Open Market Committee’s meeting minutes stated that the committee might face difficult decisions if inflation persists while the outlook for growth and employment weakens. As a result, the Fed decided to maintain rates of interest regular at 4.25% to 4.50%. This decision was made on account of increased uncertainty in regards to the economic outlook and rising risks of upper unemployment and inflation. The stocks of major crypto mining corporations, reminiscent of Riot Platforms (RIOT), CleanSpark (CLSK), and Mara Holdings, closed the trading day down 8.32%, 7.61%, and 9.61%, respectively.
Crypto Market Remains Stable
In contrast to the decline in crypto mining stocks, the crypto market remained relatively stable. Bitcoin’s price dropped by 0.90% over the past 24 hours, trading at $107,942 on the time of publication. The Crypto Fear & Greed Index climbed three points to 74, moving further into "Greed" territory. This suggests that market sentiment has improved, despite the uncertainty surrounding the economic outlook.
Tension Between Trump and the Fed
The decline in crypto mining stocks comes amid recent tension between US President Donald Trump and the Federal Reserve. Trump has publicly criticized the Fed Chair Jerome Powell for not cutting rates of interest quickly enough. This tension has contributed to the uncertainty surrounding the economic outlook and has likely impacted the stock prices of crypto mining corporations.
What’s Next for the Federal Reserve?
The next Federal Reserve rate of interest decision is ready for June 18. According to the CME FedWatch Tool, 97.8% of market participants expect rates to stay unchanged. This expectation has likely contributed to the steadiness of the crypto market, as investors await the Fed’s decision.
Conclusion
In conclusion, the US crypto mining stocks plummeted following the Federal Reserve’s release of minutes revealing uncertainty in regards to the economic outlook. Despite this, the crypto market remained relatively stable, with Bitcoin’s price dropping by only 0.90% over the past 24 hours. The tension between Trump and the Fed has contributed to the uncertainty, and investors are eagerly awaiting the following Federal Reserve rate of interest decision. As the economic outlook continues to evolve, it is crucial for investors to remain informed and adapt to the changing market conditions.
