US cryptocurrency mining company stocks generally plummeted on May 28, 2025, mainly affected by the May Federal Open Market Committee (FOMC) meeting minutes released by the Federal Reserve (Fed), which indicated increased economic uncertainty and warned of potential "difficult trade-offs" in the.
Federal releases Signal
According to the May FOMC meeting minutes, the Federal to the interest rate between rate 4. 25% to 4 % after the meeting from May 6 7. The meeting minutes emphasized increased uncertainty and more explicitly stated that the Federal Reserve would find it challenging if inflation persists while economic growth and employment prospects weaken, triggering a sell-off in risk assets.
<><>Mining Company Performance
Data shows that Riot Platforms (RIOT) stock dropped 8.32% that day, CleanSpark (CLSK) fell 7.%, and%, Marathon) plummeted 9.61%. Other Other cryptocurrency-related companies were also affected dec, with (Ccoin) declining 4.55% and MicroStrategy (MSTR), facing a class action lawsuit, saw its stock price slide 2%. In comparison, the S&P 500 index fell 0.56%.
Overall crypto Market Relatively Spanably
Despite the sell-off in stocks, cryptocurrency market demonstrated relative stability stability. Based Based on the data the time of publication, BTC dropped only 0.90% in the past 24 hours, trading at around $107,942. compared toto the the significant volatility in stocks, major cryptocdidurrnot synchronous major decline.
Reasons for Divergence Between Mining and Asset Market span><3Mining companies and cryptocurrency businesses, due to their capital-intensive nature and high dependence on financing, are extremely sensitive to interest rate changes and macroeconomic prospects. Additionally, rising mining difficulty and energy costs continue to compress their profit margins, making their stock prices susceptible to market sentiment and economic expectations.
the driving factors for the overall cryptocurrency market are more diverse including diverse, institutional investor participation, regulatory policy developments, and market demand. Recent data shows that the cryptocurrency fear and greed index rose 3 points to 74, the "eed, the overall market sentiment did did not significantlyantlly worsen due to mining stock declines.In other words, the overall cryptocurrency market has by multiple factors such as market demand driven by MicroStrategy, institutional participation, and regulatory dynamics. The recent announcement by the Trump family business of purchasing Bitcoin reserves might also be a factor. However, these positive signals may not necessarily translate into stock prices for-mining companies with higher risk. Focusing on a more macro perspective rather than short-term positives is essentially the nature of mining companies.
Facing a complex environment, investors should comprehensively consider macroeconomic policy trends, industry characteristics, and individual company fundamentals when evaluating related investment targets.
