Crypto Stocks Slide as Fed Rate Hike Fears Pressure Coinbase, Circle

Leading crypto stocks moved lower on Tuesday as concerns over a potential Federal Reserve rate hike weighed on investor sentiment. Coinbase (COIN), Bitmine (BMNR) and Circle (CRCL) all posted notable declines while Bitcoin and the broader cryptocurrency market traded largely flat.

Coinbase shares dropped around 4% to $180.75 at the time of writing. Despite the daily decline, COIN stock remains up more than 23% over the past 30 days, reflecting strong momentum from its recent rally. Investors are now watching upcoming U.S. jobs data for fresh clues about the economic outlook and Federal Reserve policy.

Bitmine shares also came under pressure, falling roughly 5% during the session. However, BMNR has gained about 40% over the past month. Circle, the issuer of the USDC stablecoin, declined more than 5% to $90.65. The weakness comes despite continued interest in CRCL from prominent investors, including ARK Invest CEO Cathie Wood.

The selloff in crypto stocks coincided with subdued digital asset prices. Bitcoin struggled to break above the key $80,000 resistance level, limiting enthusiasm across crypto-related equities.

Federal Reserve policy remains a major concern for markets. Fed Chair Kevin Warsh's hawkish Jackson Hole remarks last week raised expectations that policymakers could consider further monetary tightening if inflation remains elevated.

Fed Governor Michael Barr added to the uncertainty by noting that inflation has remained stronger than anticipated. While his comments indicated that keeping interest rates steady could still be appropriate, Barr suggested additional tightening may become necessary if inflation fails to cool sufficiently.

According to the CME FedWatch Tool, markets are pricing in roughly a 67% probability of a September Fed rate hike, sharply higher than about 40% a week earlier.

With inflation concerns, U.S. employment data and the September Fed decision approaching, investors appear increasingly cautious. The combination of elevated rate expectations and Bitcoin's struggle near $80,000 could keep Coinbase, Circle, Bitmine and other crypto stocks volatile in the near term.