Crypto Stocks and Treasuries Sink as Bitcoin Drops to $113K
Crypto stocks tumbled sharply on August 19 as Bitcoin sank to $113,000. Digital asset treasuries and related shares suffered steep losses. Strategy (MSTR), the largest corporate Bitcoin holder, fell 7.8% to its weakest since April. Treasury firms SharpLink Gaming (SBET) and BitMine (BMNR) lost 8–9%. Solana-focused DeFi Development (DFDV) and Upexi (UPXI) plunged 13.7% and 9%. Galaxy Digital (GLXY) slid 10%, while Coinbase (COIN) and Robinhood (HOOD) dropped about 6%. High-performance computing miners Bitdeer (BTDR), IREN and Hut 8 (HUT) plunged near 10%. The sell-off reflects waning risk appetite ahead of Fed Chair Jerome Powell’s Jackson Hole speech. Traders fear a hawkish stance on rates. Market watchers will track the Fed outlook for signs of impact on crypto stocks and digital asset treasuries.
Bearish
The sharp declines in crypto stocks and digital asset treasuries reflect a classic risk-off environment triggered by Bitcoin’s drop and looming Fed policy signals. Historically, announcements or speeches at Jackson Hole by Fed Chair Jerome Powell have led to market sell-offs when investors brace for hawkish rate outlooks, as seen in 2018 and 2022. In the short term, traders will likely remain cautious, anticipating further volatility if Powell signals further tightening or higher-for-longer rates. This uncertainty dampens buying in high-beta crypto stocks. Over the longer term, clear guidance on inflation and rate trajectories could restore confidence, but only after any hawkish surprises pass. Consequently, the immediate outlook for crypto stocks is bearish, though the market may stabilize if Fed rhetoric turns neutral or dovish.