Crypto stocks, which previously showed high returns relative to Bitcoin, are beginning to show signs of fatigue amidst a broader market pullback.
Moderate Growth of Crypto Stocks
According to the latest report from Matrixport, the 10x Research Crypto Stocks Index, which surged by 500% over the past 18 months, is now losing momentum. Key companies like Strategy, Coinbase, and Metaplanet have experienced corrections, driving the index down to 427%. Circle’s failed IPO also undermined investor interest in new listings.
The Market Awaits Signals
The trading session on August 20 was also challenging for crypto stocks, as Strategy and Coinbase continued to fall amid a wider risk-off mood. Coinbase (COIN) dipped about 2% to $296, while Strategy (MSTR) fell 2% to $330. The price of USDC issuer Circle (CRCL) also slid by 3.62% to $130.34.
Short-term Instability
Over the past 24 hours, Bitcoin's price decreased by 2% to just above $112,500, while Ethereum managed to recover and now sits at $4,300. Analysts at QCP Capital suggest that the remarks from Fed Chair Jerome Powell during the upcoming Jackson Hole symposium could significantly influence monetary policy direction, which may in turn affect market sentiments.
Thus, despite positive developments in the crypto industry such as the passage of the GENIUS Act and exceeding $100 billion in institutional adoption, the recent sell-off highlights the fragility of short-term positioning.
