Key Points
- U.S. crypto mining stocks saw a significant decline amid overall market volatility.
- A sharp rebound occurred in the global cryptocurrency market capitalization despite earlier market fears.
The U.S. crypto mining stocks experienced a significant decrease today, reflecting the overall market volatility.
This happened after a wave of selling pressure pushed Bitcoin (BTC) below the critical $110k level, leading to a brief but intense downturn across the crypto landscape.
Market Rebound
Contrary to expectations, the global cryptocurrency market capitalization rose to $3.56 trillion, a remarkable 317.4% increase within 24 hours, according to CoinGecko.
This swift rebound occurred despite earlier market fears.
However, while the overall crypto market showed signs of recovery, crypto mining and related tech stocks didn’t follow the same trend.
Crypto Mining Stocks Dip
Data from Google Finance shows that Riot Platforms [RIOT] closed on the 28th of May with an 8.32% decline.
CleanSpark [CLSK] and Marathon Digital Holdings [MARA] saw drops of 7.61% and 9.61%, respectively.
Crypto exchange Coinbase (COIN) also faced a setback, dropping 4.55%.
Meanwhile, MicroStrategy [MSTR], known for its heavy Bitcoin holdings, extended its five-day losing streak with a 2.14% dip, amid growing legal troubles.
The sharp decline in crypto mining and tech-related stocks occurred shortly after the release of the Federal Open Market Committee’s (FOMC) meeting minutes from the 6th and the 7th of May.
The document highlighted concerns about the potential challenges ahead for the U.S. economy.
The market remains on edge as the next Federal Reserve interest rate decision, scheduled for the 18th of June, approaches.
Adding to the market’s anxiety is the announcement of Trump Media’s ambitious $2.5 billion plan to build a Bitcoin treasury.
Compounding the uncertainty is the return of a 25% tariff on the EU beginning 1st June, reigniting inflation concerns just months after a temporary truce.
These developments have injected a fresh wave of FUD into an already volatile crypto landscape.
