A screen shows Coinbase’s signage during the company’s initial public offering (IPO) at Nasdaq MarketSite in New York, on Wednesday, April 14, 2021.
Michael Nagle | Bloomberg | beautiful pictures
Cryptocurrency Exchange Stocks Coinbase up more than 10% on the Thursday after the Consumer Price Index shows that inflation continues to increase in September beyond Wall Street’s expectations.
Bitcoin and other stocks tied to the success of crypto are also feeling the pain. Riot Blockchain, Digital Marathon and Microstrategy are all about 7% lower, while Unit (formerly Square) fell about 6%.
The broader markets also traded lower due to newly released inflation from the Bureau of Labor Statistics. But crypto stocks have seen a steeper drop than major indexes like Nasdaq Compositeabout 1.5% and S&P 500decrease by about 1%.
In recent months, rising inflation has fueled volatility on Wall Street. That’s because more disappointing news on inflation means the Federal Reserve could make larger interest rate hikes, causing economic growth to continue to slow.
Thursday’s CPI data is likely to continue to raise interest rates by 0.75 percentage points in a row in November and December. That reduces investor appetite for riskier assets, such as cryptocurrencies and crypto-related stocks.
