COIN, MSTR, CRPL: Crypto Stocks Tumble as Bitcoin and Ethereum Take a Hit

Crypto's blue chips just caught a nasty cold—and the whole sector's sneezing.

When Bitcoin and Ethereum catch a bid, everybody celebrates. But when they tank? Well, let's just say portfolio managers suddenly remember they have 'risk management protocols.'

Coinbase, MicroStrategy, and Circle weren’t just down—they were dragged. No fancy footwork could’ve saved this session. Blame it on leverage, macro jitters, or just the classic crypto volatility everyone pretends to understand until they don’t.

Even the so-called 'hedges' folded. Diversification? More like different shades of red.

So here we are—another 'buy the dip' opportunity or the start of something uglier? Either way, somebody’s gonna have to explain this at the next earnings call.

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Crypto stocks that are down 5% or more on Aug. 19, include exchanges Coinbase Global (COIN), Robinhood Markets (HOOD), and Bullish (BLSH). Other crypto stocks that are deep in the red include Strategy (MSTR) and Circle Internet Group (CRCL).

The selloff comes as the price of Bitcoin drops 3% to just over $113,000, and ethereum falls 4% to the $4,100 level, according to data from Coin Metrics. Investors appear to be pulling back on risk assets such as crypto and technology stocks as they weigh current market risks.

Interest Rates

Crypto and tech stocks had been riding high over the past week as the prospect of more interest rate cuts grew after the U.S. posted soft inflation data. Bitcoin hit an intraday all-time high of close to $125,000. However, sentiment has changed as the U.S. Federal Reserve gathers for its annual economic symposium in Jackson Hole, Wyoming.

Investors are now bracing for the U.S. central bank to provide clues about the future direction of interest rates. If Fed Chair Jerome Powell signals a more dovish policy stance, crypto could quickly recover. However, hawkish comments from Powell could jolt markets, with analysts at Evercore warning of a potential 15% drop in U.S. markets.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 7.42% in the last 12 weeks.