Coinbase Stock Tumbles as Fed Rate Hike Odds Surge to 71%
The stock price of Coinbase, COIN, hovered at $1723 on Thursday after hotter producer inflation data caused a sell-off in crypto-linked equities. The company's shares fell 1.24% as tighter policy threatened speculative demand.
The broader crypto market also took a hit, falling 2.32% to $2.62 trillion as investors reduced risk. Bitcoin price dropped below $77,000 after a decline of $1,200, while Ethereum slipped under $2,500.
Fed Rate Hike Odds Surge: The probability of a rate hike in September increased to 71%, with a 62% chance of a hike at the next FOMC meeting. This reflects the prices in futures markets, not necessarily policymakers' intentions.
Consumer inflation data on Friday may influence subsequent action on COIN stock and digital assets. The mix of robust employment figures and high oil prices presents a dilemma for policymakers, who must balance inflation concerns with the risk of further monetary tightening.