Crypto Stocks Plunge, Bitcoin Slips Below $111K Following Revised GDP Data

Cryptocurrencies and crypto-related stocks fell sharply on Thursday after the U.S. government revised second-quarter GDP growth higher, boosting Treasury yields and lowering expectations for an upcoming Federal Reserve rate cut.

GDP expanded at 3.8% annualized, up from 3.3% in the prior estimate and well above the initial 3% reading. Initial jobless claims dropped to 218,000, below expectations of 235,000, signaling continued strength in the labor market. The stronger-than-expected data pushed the 10-year Treasury yield to nearly 4.20%, its highest in three weeks, while CME FedWatch shows traders now assign a 17% chance the Fed will hold rates next month, up from 8% a day earlier.

Crypto Market Reaction

Bitcoin (BTC) dipped below $111,000, its lowest level since early September, before rebounding to $111,500, down 1.6% over 24 hours. Ether (ETH) fell below $4,000, losing 4.5%, while Solana (SOL), Dogecoin (DOGE), Avalanche (AVAX), and SUI saw even sharper declines. ETH, which had outperformed BTC for months, has now returned to roughly flat year-to-date versus a 20% gain four weeks ago. Solana, a recent favorite amid corporate adoption and digital asset treasury hype, fell 6% over 24 hours and nearly 20% over the past week.

Crypto-Related Stocks Slide

Crypto-linked equities also sold off across the board. MicroStrategy (MSTR) fell 4.5%, Coinbase (COIN) dropped 4.1%, and miners experienced steeper losses: Cipher Mining (CIFR) declined 9.4% despite early gains on its Google AI hosting deal, while HIVE Digital (HIVE), Bitdeer (BTDR), and Bitfarms (BITF) fell 6%-8%. Stablecoin issuer Circle (CRCL) retreated 4.4%, and Galaxy Digital (GLXY) slid 3.7%, extending weakness across the sector.