Cryptocurrencies and crypto-related stocks opened lower on Thursday, as the Federal Reserve’s unexpectedly hawkish stance overshadowed positive news regarding U.S.-China trade relations. During a meeting between Presidents Trump and Xi, U.S. Treasury Secretary Scott Bessent announced that plans to expand a blacklist of Chinese companies would be paused, alongside an agreement for China to significantly increase its purchases of U.S. soybeans this year and beyond. Despite what would typically be seen as bullish developments, particularly for traditional and crypto markets, the optimism seemed to have already been factored in, leading to a decline instead.
Federal Reserve Chairman Jerome Powell’s statement emphasizing that further interest rate cuts were not guaranteed served to unsettle markets. As a result, bond yields and the U.S. dollar both strengthened. Bitcoin took a hit, dropping below the $108,000 mark, marking its lowest price in over a week, with a 4.4% loss over the last 24 hours. The cryptocurrency is now down nearly 8% from Monday’s peak of $116,000. Ethereum’s ether also fell sharply, down by 5% to break below the $3,800 level.
Major altcoins experienced similar declines, with XRP, Solana, DOGE, and ADA losing between 5% and 7% in value within the day. Crypto-related stocks reflected this downward trend. Shares of Coinbase fell nearly 3% ahead of its third-quarter earnings report, while other companies like MicroStrategy, Robinhood, and Circle lost around 2%. Gemini took a more substantial blow, dropping nearly 5%, with mining stocks also experiencing declines.
Amidst a busy earnings season, the Nasdaq index fell by 1%, with Meta Platforms encountering a sharp 12% drop following disappointing results, while Google saw a 5% increase after positive outcomes. The S&P 500 was marginally lower, but the Dow Jones Industrial Average managed to gain ground during the session.
As October nears its conclusion, traders’ high expectations for a traditionally bullish month—often referred to as “Uptober”—are rapidly diminishing. Bitcoin is down more than 5% for October, which would make it its worst performance for the month since 2014. The ongoing market correction has also affected digital asset treasuries (DAT), which had gained traction earlier this year as public companies bought cryptocurrencies through equity raises and debt offerings. Many once-prominent stocks have now dipped below the net asset value of their underlying holdings.
MicroStrategy stands out with a new low since the April tariff tensions, trading at $268—over 50% down from its all-time high of November 2024 and a staggering 40% decline since mid-July. The company, which is set to report third-quarter earnings, is currently trading at a 1.33x premium to its market-adjusted net asset value, its weakest performance since February 2024. Other companies like KindlyMD have seen their shares fall by 6%, trading below $0.90 while facing potential delisting from Nasdaq. Strive has seen its stock trading below its $1.35 warrant price at $1.30, marking a significant headwind for recovery.
Additionally, SEGG Media Corporation announced a $300 million digital asset strategy aiming to integrate blockchain into the sports and entertainment sectors. Just a few months prior, such news would have likely resulted in significant stock gains. However, in the current climate where the DAT bubble has burst, SEGG’s shares slipped by 3% on Thursday.
