Crypto Stocks Crash as Bond Selloff Sends Yields Soaring
Crypto stocks are falling sharply despite flat prices for Bitcoin and Ethereum on Tuesday. Circle Internet Group's stock is down 4% to $91.80, reversing part of Monday's 10% rally, while Bitmine Immersion Technologies shares are also falling 4% to $24.38 after climbing 6% in the prior session.
Coinbase Global's stock is sliding 3% to $182.20, unwinding a 5% Monday advance. The decline in these stocks is attributed to a global bond selloff that has pushed the 10-year Treasury note yield above its previous 52-week high of 4.75% set on July 31.
The higher long-term yields are compressing valuations for high-multiple, high-beta stocks like Circle Internet, Bitmine, and Coinbase, which all occupy this category. No fresh company-specific news explains the declines in any of these names today, and with both Bitcoin and Ethereum up just 0.1% over the past 24 hours, the session reads as risk-off positioning working through the highest-beta corner of the market.