Crypto-linked stocks fell after U.S. inflation in August came in higher than expected and bitcoin tumbled more than 7% on Tuesday.
The shares of crypto miners, which are most exposed to the price swings of the digital currencies they mine, were the worst hit. Stocks of some of the largest, such as Core Scientific (CORZ), Riot Blockchain (RIOT) and Marathon Digital (MARA), fell by more than 7% in early U.S. trading.
Traders view the consumer price index report as a key indication of whether the U.S. Federal Reserve is likely to raise rates by another 75 basis points, or 0.75 percentage point, when it meets next week. The Fed raised rates by that amount in each of its last two meetings.
The S&P 500 index has fallen about 17% and Nasdaq fell 26% this year, while bitcoin has lost more than 50% as higher inflation has led the Fed to raise interest rates, causing most asset classes to decline in value.
"[With recent CPI numbers] Hopes of a soft landing, the end of the Fed hiking...
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