Crypto stocks slid as macro fears, government shutdown jitters and lingering fallout from October’s $19 billion liquidation hit investor sentiment.
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Shares of crypto-focused companies have tumbled this week, capping a bruising stretch for the digital asset sector marked by renewed macroeconomic fears and lingering fallout from October’s liquidity crunch and mixed corporate earnings.
Coinbase (COIN), Block Inc. (XYZ) and Robinhood (HOOD) have fallen 11% to 14% this week, according to Google Finance data, erasing recent gains and underscoring the fragile sentiment surrounding crypto-linked equities.
On Oct. 30, and revenue as it advanced its “Everything Exchange” initiative, aimed at expanding the volume and diversity of tradable assets on its platform. Yet, despite the upbeat results, shares failed to maintain momentum amid broader market pressures and declining risk appetite.
Meanwhile, the Jack Dorsey-led fintech Block Inc. came under renewed selling pressure after and facing investor scrutiny over slowing growth and profitability within its flagship Square payments unit.
Robinhood, by contrast, delivered solid third-quarter results on the back of a surge in crypto trading volumes. However, a leadership shake-up and softer-than-expected growth in its crypto segment overshadowed the earnings beat, sending shares lower.
Despite this week’s declines, Robinhood remains the best-performing stock of the trio — up more than 200% year-to-date.
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Crypto-linked stocks are under pressure as broader risk-off sentiment sweeps through the digital asset market, driven by uncertainty over the ongoing US government shutdown and lingering fallout from last month’s , which wiped out roughly $19 billion in leveraged positions.
The crash prompted Crypto.com CEO Kris Marszalek to into how exchanges managed the sell-off.
The episode has also revived concerns about hidden vulnerabilities in the industry — or as some market watchers refer to them — leading analysts to scale back their outlook for the crypto sector.
Those fears prompted another wave of selling in the crypto markets this week, with Bitcoin () briefly sliding below $100,000, marking a 20% correction from its all-time high.
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