Cryptocurrencies and crypto-related stocks opened lower Thursday as Wednesday’s surprisingly hawkish turn outweighed steady progress on the Chinese trade front.
Presidents Trump and Xi met overnight and Treasury Secretary Scott Bessent Thursday morning said the US government has stopped plans to expand a blacklist of Chinese companies. He also touted a deal for China to curb purchases of US soybeans this year and in the future.
Where these types of headlines can send traditional and crypto markets higher, it appears that good news may be priced in.
Instead, Federal Reserve Chairman Jerome Powell’s forced yesterday Further rate cuts are far from certain to continue to rattle markets, with bonds and the dollar both continuing to hold steady.
Bitcoin taken Wednesday lowswhich fell below $108,000 at its weakest price in more than a week. It has lost 4.4% in the past 24 hours and is down nearly 8% from Monday’s high of $116,000.
Ethereum’s ether Tumbled 5% breaking below $ 3,800. Major Altcoins Solana , and Pour 5% -7% a day.
Crypto-related stocks reflect broader market trends. Shares of Coinbase (COIN), which reported third-quarter earnings after a market close, fell nearly 3%. Strategy (MSTR), Robinhood (Hood) and Circle (CRCL) all fell 2% while Gemini (Gemi) took a bigger hit and fell nearly 5%. Miners also traded lower.
Also dealing with a busy earnings season, the NASDAQ was down 1%, with meta down 12% on disappointing results and Google early 5% after the opposite. The S&P 500 was only marginally lower and the DJIA was higher on the session.
October was disappointing for the Bulls
As October is almost over, crypto traders’ high hopes for a bullish month, often called “Uptober,” have almost certainly been dashed. At current prices, Bitcoin is down more than 5% for the month in what would be its worst October return since 2014.
With the Crypto Market in Correction Mode, the frenzy around Digital Asset Treasury (DAT), which took over Wall Street earlier this year with public companies pivoting to buy cryptos by selling shares and debt, continues to resolve. Many high-flying stocks have fallen below the net asset value of their underlying holdings.
Strategy (MSTR) has hit a fresh low since the April tantrum, now trading at $268, down more than 50% from its all-time high in November 2024, along with a staggering fall of nearly 40% since mid-July. The company reports third quarter earnings after the closing bell today. MSTR is currently trading at a 1.33x premium to net asset value (MNAV), its weakest per metric since February 2024.
KindlyMd (Naka), another BTC Treasury, fell 6%, trading below $0.90 and facing pressure to get delisted from NASDAQ. Meanwhile, Strive (ASST) is trading below the $1.35 warrant price at $1.30, creating a clear short-term headwind for further upside.
Thursday also brought another entrant into the dat game with Segg Media Corporation (SEGG), announcement a $300 million digital asset strategy to “generate sustainable on-chain yield, accelerate tokenization across sports and entertainment, and embed blockchain infrastructure into the global media ecosystem.” Months ago, the headline alone would have spurred major gains for the nanocap, but since the DAT bubble popped, shares slipped 3% on Thursday.
