Investing.com — Shares of companies with significant cryptocurrency exposure, including Microstrategy, Inc. (NASDAQ: NASDAQ: ), Marathon Digital Holdings (NASDAQ: NASDAQ: ), Riot Platforms (NASDAQ: NASDAQ: ), Coinbase (NASDAQ: NASDAQ: ), Robinhood (NASDAQ: NASDAQ: ), Bit Digital (NASDAQ: BTBT ), and CleanSpark (NASDAQ: NASDAQ: ), saw a decline in Thursday's trading session. Microstrategy led the decline with a 5.5% decline, as the broader sector reacted to the Federal Reserve's latest interest rate warning signals and a significant price pull to record highs.
The decline of the crypto market, with Bitcoin falling more than 10% from its peak earlier this week, has created a ripple effect, affecting stocks related to the digital currency. The reduction of the possibility of a loose US monetary policy has reduced speculative interest, causing a significant slide in crypto-related equities. Bitcoin's slide to as low as $92,149 on Friday morning, after reaching just above $108,000, had a special impact on smaller brands such as, which experienced further declines.
This change in investor sentiment was highlighted by the outflow of a record 680 million dollars from a group of US exchange-traded funds directly in Bitcoin, ending a 15-day streak of continuous inflow. The outflows represent the biggest one-day losses for these funds, according to data compiled by Bloomberg, reflecting widespread market anxiety toward speculative crypto assets.
The sell-off in these stocks represents an increase in investor sentiment as they update their expectations regarding the Federal Reserve's stance and volatile movements in the cryptocurrency market. The wider implications for companies like Microstrategy and others in the sector are yet to be fully realized as market participants assess the possibility of interest rate hikes and their impact on speculative investments.
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