COIN, BMNR, MSTR, & Other Crypto Stocks Slip Amid Rising Oil Prices & ECB’s Rate Hike Plan

The crypto stocks, including Coinbase (COIN), Bitmine (BMNR), Strategy (MSTR), Circle (CRCL), and others, have slipped today amid a retreat in the broader digital assets space. Notably, the plunge comes amid soaring geopolitical and macroeconomic concerns.

In addition, the European Central Bank has kept interest rates steady at its latest meeting, but is expected to raise rates in September. This, alongside soaring oil prices, has fueled investors’ concerns over a potential similar move by the US Federal Reserve.

Crypto Stocks Slip As Oil Prices Soar

Crypto stocks have recorded significant losses today, as BTC price slipped below the $65k mark and Ethereum price lost around 3%. The slump comes amid soaring geopolitical tensions between the US and Iran.

In addition, the ongoing war has also fueled a rally in oil prices, which has further spooked investors over a surge in inflationary pressure. As of writing, the Brent Oil Futures traded at $101.09, with a surge of nearly 8% in the last 24 hours. The WTI Crude Oil was also up around 7% to $92.77 at the same time.

Notably, the dip in the crypto stocks also comes after the US initial Jobless Claims fell significantly, which has further cemented bets over a hawkish Fed move ahead. Simultaneously, the recent reports suggest that the European Central Bank may consider a potential rate hike in September to curb inflationary pressures.

Having said that, crypto market watchers are evaluating the possibility of the next move of the US Federal Reserve. According to the CME FedWatch Tool, the odds of a potential Fed rate hike in September now stand at 56.5%.

COIN, BMNR, HOOD, & CRCL Prices Slip

The soaring macroeconomic and geopolitical tensions have weighed on investors’ sentiment, as evidenced by the performance of the broader financial sector. The crypto market was also no exception, with the crypto stocks recording significant losses today.

As of writing, the Coinbase (COIN) stock price was down more than 2% and traded at $162.51, while the Strategy (MSTR) stock slipped nearly 6% to $94.29. The USDC-issuer Circle (CRCL) stock fell nearly 5% to $63.18, with Bitmine (BMNR) stock losing around 8% to $16.40.

The Robinhood (HOOD) crypto stock also plummeted around 2% to $102.40, suggesting the waning risk-bet appetite of traders. Having said that, it seems that the anticipation of a tightened monetary policy and the geopolitical tensions have continued to weigh on traders’ sentiment.

For context, higher interest rates often limit liquidity in the market, which in turn impacts riskier assets like the crypto market. As crypto stocks also move in tandem with the performance of the broader digital assets space, investors should exercise due diligence before placing their bets amid the ongoing volatile scenario in the market.

Meanwhile, to perform deep-dive analysis on market sentiments and macro trends, traders can utilize the best crypto research tools to make data-driven investment decisions.