Crypto Stocks Plunge Amid Macroeconomic Uncertainty

Robinhood Markets experienced a dramatic reversal of fortune as its shares fell more than 9% at one point to trade at $131, sinking to their lowest level in over two weeks according to Yahoo Financial data. This precipitous decline came just 24 hours after the company had surpassed analysts’ estimates for both revenues and earnings per share for its third quarter ending September 30. The disconnect between strong fundamental performance and market reaction highlights how macroeconomic factors are overwhelming company-specific positive news in the current environment.

The sell-off extended across the crypto sector with exchange giant Coinbase tumbling over 6% and Galaxy Digital declining 4%. Mining companies suffered similar fates, with MARA Holdings off 3.6% while CleanSpark and Riot Blockchain both dropped over 5%. The carnage wasn’t limited to direct crypto plays—Bitcoin treasury strategy declined 6.5%, while Ethereum-focused companies BitMine Immersion and SharpLink Gaming fell 7% and 6% respectively, demonstrating the broad-based nature of the downturn.

The record 37-day government shutdown has emerged as a central concern for investors, with Mark Palmer, an equity analyst at investment bank Benchmark, telling Decrypt that ‘the entire crypto market is simply being buffered by macroeconomic events and changes in sentiment.’ Palmer emphasized that factors including ‘interest rate expectations, tariffs, and all of the other elements that go into the macro outlook’ are driving market movements despite having no direct impact on many crypto companies.

Economic indicators revealed deepening troubles in the broader economy. Outplacement firm Challenger, Gray & Christmas reported that U.S.-based employers cut 153,074 jobs in October—nearly triple the total for the same period a year ago and the highest October total since 2003. This disappointing jobs data, combined with escalating trade tensions between the United States and China, has increased the risk premium across markets, pulling down crypto stocks along with traditional assets.

The broader market indices reflected the pessimistic sentiment, with the tech-focused Nasdaq declining nearly 2% while the S&P 500 and Dow Jones Industrial Average both fell more than 1%. Palmer noted that ‘in the absence of any positive catalysts’ the increased risk premium was taking ‘crypto stocks down along with everything else,’ illustrating how digital assets remain correlated with traditional risk markets during periods of macroeconomic stress.

The government impasse has created an additional headwind by delaying crucial cryptocurrency legislation that market participants had been anticipating. Palmer specifically highlighted that the shutdown had waylaid passage of the Clarity Act and a separate market structure bill (RFIA), legislation that could potentially buoy markets by providing regulatory certainty. ‘Given that the government remains shut down, such that the timing of the enactment of this legislation is uncertain, there’s really no underlying catalyst you know that would push prices higher,’ Palmer explained.

Bitcoin recently traded at approximately $101,500 according to CoinGecko data, down 2% over the past 24 hours despite recovering some lost ground. The largest cryptocurrency by market value has declined about 18% since reaching its record high above $126,000 a month ago. Ethereum, the second-largest digital asset, fell 3.6% as the sell-off extended across major cryptocurrencies.

Despite the current pessimism, some indicators suggest lingering optimism among market participants. In a Myriad prediction market—a unit of Dastan, the parent company of Decrypt—57% of respondents believed that Bitcoin’s next move would be to $115,000. This divergence between current market conditions and forward-looking expectations highlights the tension between short-term macroeconomic pressures and longer-term bullish sentiment in the digital asset space.