COIN, HOOD, GLXY Stock Slides as High CPI Data Dampens Fed Rate Cut Hopes
Major crypto stocks, COIN, HOOD, and GLXY, have recorded losses in value at the close of trading for the week. This was mostly attributed to the release of the new CPI data, which has reduced the chances of the Fed making another rate cut.
COIN, HOOD, GLXY Stock Tumble Amid Hawkish Fed Signals
Major crypto shares fell as the Bitcoin price reacted to the recently released inflation data. The coin fell back to $63,ooo after initially rallying to around $70,000 earlier in the week.
For context, the COIN stock price fell by nearly 3%, according to Yahoo Finance. This comes especially after it rallied on Tuesday, following Coinbase’s launch of stock and ETF trading for all US customers. This rollout enables customers to buy and sell US stocks and ETFs on the same exchange they use for crypto.
Another crypto stock, HOOD, also saw a 4.53% decline in price. The last major gain occurred on Wednesday when the stock rose 5.8% following the news that a rally in Bitcoin could boost trading activity on its exchange platform, Robinhood. The stock has risen following a 6% gain in the price of BTC, which has traded above $69,000.
After COIN and HOOD, GLXY, Galaxy Digital’s stock, was the worst performer, falling 6%. Other crypto-linked stocks, such as Strategy (MSTR) and BMNR, also declined in the session.
March Rate Cut Chances Drop Amid Hot Inflation Data
According to CME’s FedWatch tool, there is a 92% chance that the Federal Reserve will keep its interest rates steady in the upcoming FOMC meeting. The odds of it happening dropped after the hotter-than-expected U.S. PPI inflation data.
According to Chris Zaccarelli, the chief investment officer at Northlight Asset Management, this new release is yet another reason the Fed will not make any cuts next month, which could be bearish for crypto stocks like COIN.
He said, while it doesn’t normally get as much attention as the inflation readings in the CPI or the PCE, the numbers came in higher than expected across the board.
“For the past month the market has been worried about AI disruption and its impact on the labor market, so inflation hasn’t been top of mind, but this morning’s inflation readings could give the Fed another reason to be more patient with rate cuts and wait until the second half of the year before making any changes,” he said.
Last month, the Federal Reserve maintained its interest rates at 3.5% to 3.75%, despite being under immense pressure from President Donald Trump to make more cuts.
The next FOMC meeting by the committee is expected to be held between March 17 and March 18.
