Why Are COIN, MSTR, MARA, RIOT Crypto Stocks Down Today?

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In case you didn’t get the memo, a crucial meeting of the Federal Open Market Committee (FOMC) will be held this week. People who trade crypto stocks like Coinbase global (NASDAQ:PIECE OF MONEY), MicroStrategy (NASDAQ:MSTR), digital marathon (NASDAQ:MARA) and Riot Blockchain (NASDAQ:RIOT) are on edge today. These stocks are in the red as investors await a crucial decision from the Federal Reserve.

This month’s FOMC meeting actually starts tomorrow, but the feeling of anxiety is likely to persist through Wednesday. Indeed, the Fed will almost certainly announce an increase in the federal funds rate on September 21st.

At this stage, it is not a question of ifbut rather How many. Will the Federal Reserve raise the benchmark interest rate by 50 or 75 basis points? The odds seem to weigh in favor of 75, and higher bond yields could put negative pressure on high-risk and growth assets.

Among these assets, there is of course cryptocurrency. Still, the price damage could spill over to a number of crypto stocks. Some of them, however, will be hit harder than others.

What’s Happening With Popular Crypto Stocks Today?

Every company and every stock will be affected differently by the Fed’s impending decision. To some extent, this depends on each company’s exposure to cryptocurrency tokens such as Bitcoin (BTC-USD).

For example, Coinbase’s business relies heavily on Bitcoin trading. So it shouldn’t come as too much of a surprise that COIN stock fell 5% this morning. MicroStrategy owns bitcoin, but it’s an analytics software and services company that isn’t entirely crypto-related. MSTR stock fell 1.5% in early trading today.

Interestingly, shares of Marathon Digital and Riot Blockchain held up relatively well this morning. In fact, MARA and RIOT shares were only down about 1% in the first half hour of trading.

Aren’t Marathon Digital and Riot Blockchain investors concerned about Wednesday’s Fed decision? Haven’t they noticed that Bitcoin is below $20,000?

Don’t jump to hasty conclusions. The jitters could build until 2:00 p.m. Eastern Time Wednesday when the big announcement is made. Prepare for any possible outcome – you never know what the Fed might do or where crypto stocks might go.

As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

David Moadel has delivered compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga and (of course) InvestorPlace.com. He is also the Chief Analyst and Market Researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.


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