Fed Rate Hike Hits Crypto Stocks as Bitcoin Holds Firm

The US Federal Reserve raised interest rates for the first time since July 2023, by a quarter of a percentage point to 3.75% to 4.00%, with Chair Kevin Warsh citing elevated inflation as the reason.

Despite this, Bitcoin held its ground near $76,000, while publicly listed cryptocurrency-linked stocks such as Coinbase, Circle, and Robinhood took a hit, with declines ranging from 2.64% to 6.78%.

The widening gap between the underlying asset and operating companies that trade around it is evident in the performance of these stocks compared to Bitcoin's resilience.