Fed Uncertainty Sends U.S. Crypto Mining Stocks Tumbling

Fed Uncertainty Sends U.S. Crypto Mining Stocks Tumbling

Major U.S. crypto mining stocks plunged on May 28 following the release of the latest FOMC (Federal Open Market Committee) meeting minutes, which highlighted growing uncertainty in the economic outlook.

According to the minutes, the Federal Reserve warned that inflation may persist longer than expected while growth and employment could slow down, potentially leading to difficult monetary policy tradeoffs. The Fed had previously left interest rates unchanged at 4.25%–4.50% during its early May meeting, citing rising risks in unemployment and inflation as the key reasons for its decision.

Amid this cautionary tone, prominent digital asset mining stocks dropped significantly:

• Riot Platforms: -8.32% to $8.38

• CleanSpark: -7.61% to $9.11

• Mara Holdings: -9.61% to $14.86

Other crypto-related companies were also hit. Coinbase fell 4.55% to close at $254.29, while Strategy declined 2.14%, marking five consecutive days of losses. Strategy is currently entangled in a legal dispute involving Bitcoin investments.

Interestingly, despite the stock market pullback, the broader digital asset market remained relatively resilient:

• Bitcoin (BTC) dipped 1.29% to $107,569 on Binance

• Ethereum (ETH) rose 3.05% to $2,728

Investor sentiment remains strong, with the Crypto Fear & Greed Index climbing to 74, entering the “Greed” zone, indicating bullish momentum.

The next Fed interest rate decision is scheduled for June 18, with 97.8% of market participants expecting a rate pause.