Key Insights:
- Crypto stocks MSTR down 2%, MARA drops 8%, COIN falls 2.7%, and HOOD slides 4.5% today.
- Fed rate hike odds rise, overshadowing fading hopes for cuts.
- US-Iran tensions prolong, adding caution in crypto markets.
Crypto stocks fell sharply today amid rising expectations of a Federal Reserve rate hike this year. Investors are growing cautious, sending major crypto-related shares like MicroStrategy (MSTR), Marathon Digital (MARA), Coinbase (COIN), and Robinhood (HOOD) lower.
Crypto Stocks are Slumping Today
As the trading week kicks off on Monday, crypto stocks are experiencing a major downturn. Companies like MicroStrategy (MSTR), Marathon Digital (MARA), Coinbase (COIN), and Robinhood (HOOD) are under pressure, in line with the broader crypto market trend.
The crypto market is in the red zone today. Currently valued at $2.36 trillion, down 0.75%. Major digital assets like Bitcoin, Ethereum, and XRP are facing notable losses, sparking widespread caution. Coinciding with this larger negative trend, crypto shares are also under severe pressure.
MSTR Crypto Stock Down by 2%
MicroStrategy, now known as Strategy, is the largest public holder of Bitcoin. As BTC is experiencing pressure, the company is also on the same line. As a result, the MSTR stock price is down by nearly 2% in a single day.
The shares closed at $135.6 on March 20, down 1.85%. In the overnight hours, it plunged to $131, down 2.71%. Over the past five days, the stock price has plummeted by 2.8%.
MARA Stock Plunges
Marathon, the second-largest Bitcoin treasury company, has also seen its shares tumble. The crypto stock price fell by about 8% in a day alone. It closed trading on March 20 at $8.46. Over a five-day period, it saw a more notable plummet of about 10%.
COIN Crypto Stocks
The shares of Coinbase, one of the most prominent crypto exchanges, have also reflected the broader negative trend. The COIN crypto stocks are currently at $197.50, down 2.67%.
However, the shares have seen notable upticks over the past five days and 30 days, surging by 1% and 15%, respectively. This indicates that despite the current slump, the COIN crypto stock is showing positive signals.
HOOD Stock Moves Down
Robinhood crypto stocks are also on a downward track. As of press time, the shares are valued at $70.89, down by about 4.5%. Over the last five days, it has plunged by 3.6%. On a monthly basis, the dip was more severe at 6.5%.
Why are Crypto Stocks Down Today?
The current downtrend across the crypto industry is mainly due to two major reasons. The first reason is the escalating US-Iran tensions. The next concern is the fading hopes of Fed rate cuts and rising odds of potential hikes.
Fed Rate Cut Hopes Fade
The Federal Reserve decided to hold interest rates unchanged at 3.50%-3.75% at the March FOMC meeting. As this was widely expected, it had little impact on the crypto market and shares.
However, now the chances of a Fed rate hike are rising. Experts believe the Fed will raise rates by October 2026. This sparks caution, impacting crypto stocks and prices.
US-Iran Tensions
As the US-Iran war enters its fourth week, there are no signs of an imminent end. This escalating pressure casts a shadow over the crypto market as traders remain cautious, looking for more stable assets.