While the broader crypto market held its ground, U.S.-based crypto mining stocks took a sharp dive on May 28. The catalyst? A fresh wave of uncertainty stirred by the Federal Reserve’s meeting minutes, which revealed increasing concern over potential economic instability.
The Federal Open Market Committee (FOMC) released the minutes from its May 6–7 meeting, and while the Fed opted to keep interest rates steady at 4.25% to 4.50%, the tone of the notes unsettled investors. The central bank acknowledged it could soon be caught in a bind: balancing the risk of persistent inflation against weakening economic growth and rising unemployment.
“The Committee might face difficult tradeoffs,” the minutes read, hinting that the Fed may struggle to find the right policy response if inflation refuses to cool while jobs and GDP begin to sag. That apprehension sent ripples through several market sectors—but none more so than crypto mining.
Crypto Mining Stocks Bear the Brunt
Bitcoin mining firms, particularly those based in the U.S., closed the day deep in the red. Riot Platforms (RIOT) dropped by 8.32%, while CleanSpark (CLSK) declined by 7.61%. Marathon Digital Holdings (MARA) led the losers with a 9.61% tumble by the end of regular trading hours, according to data from Google Finance.
There was a glimmer of relief in after-hours trading as MARA clawed back 2.56%, but overall, the sentiment around mining stocks was decidedly cautious. These companies are often considered high-beta assets, meaning they’re more sensitive to shifts in economic sentiment, particularly those involving interest rate policy or energy costs.
Coinbase, MicroStrategy Also Feel the Pressure
It wasn’t just miners taking hits. Coinbase (COIN), the largest publicly traded crypto exchange in the U.S., also dipped by 4.55%. Meanwhile, MicroStrategy (MSTR)—known for its aggressive Bitcoin accumulation strategy under chairman Michael Saylor—slipped another 2.14%, extending its five-day losing streak. The slide came on the heels of a new class-action lawsuit accusing company executives of failing to adequately communicate the risks involved with its heavy Bitcoin investments.
Fed in Trump’s Crosshairs
The pressure on the Fed isn’t only coming from the markets. Former President Donald Trump has intensified his criticism of Fed Chair Jerome Powell in recent weeks. In an April 17 statement, Trump bluntly declared, “Powell’s termination cannot come fast enough!”—a signal of his frustration over the central bank’s reluctance to cut rates amid ongoing inflationary pressures.
Crypto Markets Stay Resilient
Interestingly, while miners and related stocks suffered, the crypto market itself was relatively unshaken. Bitcoin (BTC) dipped just 0.90% over the 24-hour period, trading at approximately $107,942 at the time of writing. Over the past week, BTC has slipped about 2.06%, but that’s hardly the kind of volatility that would trigger alarm bells in a market known for wild swings.
Sentiment across the digital asset space even showed signs of improvement. The Crypto Fear & Greed Index, a widely followed gauge of investor mood, inched up three points to 74, further entrenching itself in “Greed” territory.
Looking Ahead: Fed Decision on June 18
The next key date on the calendar is June 18, when the Federal Reserve is set to announce its next interest rate decision. According to the CME FedWatch Tool, nearly 98% of traders currently anticipate that the Fed will hold rates steady once again.
Until then, crypto miners and investors alike will be watching every economic data point and Fed comment with intense scrutiny. While Bitcoin itself continues to demonstrate relative stability, the companies that depend on it—especially those deeply exposed to energy and capital markets—may remain under pressure as macroeconomic uncertainty drags on.
