Shares of Strategy (MSTR), Coinbase (COIN), Robinhood Markets (HOOD) and Bitmine Immersion Technologies (BMNR) fell on Wednesday after the Federal Reserve kept its benchmark interest rate unchanged at 3.75% to 4%.
The four stocks were lower in afternoon trading on Wednesday. Robinhood recorded the largest decline, falling 3.77% to $90.99. Coinbase dropped 1.33% to $158.94, Bitmine declined 1.23% to $21.35, and Strategy lost 0.92% to $140.10, according to Yahoo Finance data (at 7 p.m. UTC on October 28).
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The declines coincided with the Fed’s policy announcement, but the available market data does not establish that the decision caused the share-price moves. Bitcoin and Ether, meanwhile, traded higher over the preceding 24 hours.
The Federal Open Market Committee voted 10–2 to maintain the federal funds rate at 3.75%–4%. The decision followed the central bank’s September rate increase and came as policymakers weighed persistent inflation against signs of continued economic growth.
Fed holds rates as two officials back another increase
The Fed’s decision left borrowing costs unchanged, but the vote exposed differences among policymakers over the direction of monetary policy. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a 25-basis-point increase that would have lifted the target range to 4%–4.25%.
The central bank upgraded its assessment of economic activity, describing it as expanding at a “strong pace,” compared with the “solid pace” used after its September meeting. It cited resilient domestic spending, strong productivity growth and robust capital investment.
The Fed also said job gains had broadly kept pace with workforce growth and that the unemployment rate had changed little. However, it maintained that inflation remained elevated and said incoming economic data would guide future policy decisions.
September’s Consumer Price Index showed annual inflation at 3.7%, up from 3.4% in August. Monthly prices increased 0.6%, while core CPI, which excludes food and energy, rose 2.6% over the year.
Robinhood leads declines among crypto-linked stocks
Robinhood shares (HOOD) fell 3.77% to $90.99 in the supplied afternoon snapshot, making the trading platform the weakest performer among the four stocks. Its trading volume reached approximately 30.77 million shares, above its average volume of 20.39 million. The stock opened at $89.23 and traded between $89.15 and $92.60. Its intraday market capitalization stood at about $82.05 billion, according to Yahoo Finance data (at 7 p.m. UTC on October 28).
Meanwhile, Coinbase (COIN) declined 1.33% to $158.94, with approximately 3.84 million shares traded. The stock opened at $156.64 and reached an intraday high of $161.36. Coinbase had an intraday market capitalization of approximately $42.11 billion in the supplied data, according to Yahoo Finance data (at 7 p.m. UTC on October 28).
Strategy and Bitmine also trade lower
Strategy shares (MSTR) fell 0.92% to $140.10, giving the company an intraday market capitalization of approximately $59.50 billion. The stock opened at $139.57 and traded within a range of $138.66 to $142.44. Trading volume stood at about 6.84 million shares, below its average volume of 22.35 million, according to Yahoo Finance data (at 7 p.m. UTC on October 28).
Bitmine Immersion Technologies (BMNR) declined 1.23% to $21.35, with approximately 12.50 million shares traded. The stock opened at $21.52 and moved between $21.16 and $21.79. Its intraday market capitalization was approximately $12.90 billion, according to Yahoo Finance data (at 7 p.m. UTC on October 28).
Circle shares also decline
Circle Internet Group (CRCL) also traded lower, falling 1.90% to $80.03. The stock opened at $80.44 and recorded an intraday range of $79.26 to $82.04. Its trading volume was approximately 4.03 million shares, compared with an average volume of 13.09 million. Circle’s intraday market capitalization stood at about $20.38 billion, according to Yahoo Finance data (at 7 p.m. UTC on October 28).
Bitcoin and Ethereum post modest gains
Bitcoin (BTC) traded at $80,939.23 on Oct. 28, up 0.43% over 24 hours. Its market capitalization increased 0.43% to approximately $1.62 trillion, while 24-hour trading volume rose 4.16% to $22.8 billion. Bitcoin’s circulating supply stood at approximately 20.1 million BTC, against its maximum supply of 21 million. The data also listed treasury holdings of about 1.38 million BTC, according to CoinMarketCap data (at 7 p.m. UTC on October 28).
Ether (ETH) rose 0.47% to $2,354.50 over the same 24-hour period. Its market capitalization increased 0.48% to approximately $287.64 billion, while trading volume declined 7.35% to $8.46 billion. Ether’s circulating supply stood at approximately 122.17 million ETH, with no maximum supply limit. Its volume-to-market-capitalization ratio was 2.93%, compared with Bitcoin’s 1.34%, according to CoinMarketCap data (at 7 p.m. UTC on October 28).
The modest gains in Bitcoin and Ether contrasted with the declines in Strategy, Coinbase, Robinhood, and Bitmine shares. The different performance shows that the selected crypto-linked equities did not move in line with the two largest cryptocurrencies during the measured period.
The declines in the selected crypto-related stocks coincided with the Fed’s decision to hold interest rates unchanged. However, available market data does not establish that the decision caused the share-price losses.
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