Cryptocurrency-Linked Stock Rally Faded Soon After It Started Like Bitcoin reversed from a move above $90,000. BTC is now trading around $86,500, down about 3.9% in the last hour.
Other cryptocurrencies also fell. The price of ether fell 5.3% to around $2,850 and XRP fell 4.1% to around $1.89. The broader market, as measured by the CoinDesk 20 Index (CD20), is now down 1.5% on the day.
The setback hit the miners hard. MARA Holdings (MARA) erased gains and is now 4.8% lower on the day, Core Scientific (CORZ) fell 6%. CleanSpark (CLSK), a previous top performer, gave up all its gains to trade down 0.38% and Riot Platforms (RIOT) lost 0.7%.
Crypto trading and services stocks also cooled. Circle Internet (CRCL), the issuer of the USDC stablecoin, fell 3.2%, Strategy (MSTR), the largest corporate holder of bitcoin, fell 2%, and Galaxy Digital (GLXY) fell 1.9%. Crypto exchange Coinbase (COIN) fell 0.55%.
One standout that remains positive is Hut 8 (HUT), which rose 20% in early trading after announcing a 15-year, $7 billion leasing deal with AI infrastructure company Fluidstack. It is still up more than 12% on the day.
The reversal came even as Fed Governor Chris Waller, now a favorite in prediction markets to replace Jerome Powell as Federal Reserve chair, downplayed the neutral stance on interest rates and said job growth appears close to zero.
Still, Polymarket and Kalshi show odds of more than 70% that rates will not be reduced in January. The CME FedWatch points in the same direction.
