Crypto stocks kick off week down bad

Share prices of companies in the cryptocurrency industry plunged after the market opened on Monday, with names like Coinbase and Galaxy Digital trading down by double digits. 

Coinbase kicked off Monday's session down more than 10%, while MicroStrategy — the firm known for hoarding bitcoins on its balance sheet—was down 13.9%. Galaxy — the merchant bank run by Michael Novogratz —was trading down 17%. 

The bearish start to the week for crypto stocks follows a rough weekend for liquid crypto tokens, which extended into Monday. Bitcoin is down more than 7% since early Saturday. 

Cryptocurrencies and crypto company shares have plunged along with the broader market for tech stocks, which has been seized by concerns about the US Federal Reserve's plan to scale back its balance sheet and hike interest rates. In such a hawkish environment, investors typically flee riskier investments.


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All eyes will now be on the FOMC meeting this week which will begin the Fed's efforts to reduce its balance sheet as a way to fight mounting inflation. 

Aside from crypto stocks, the Nasdaq Composite was down 1.5% at the time of writing. The Nasdaq 100 was down 1.56%

According to research from investment bank Goldman Sachs, more than half of the Nasdaq 100's companies have declined by 10% or more since the index's peak in November. 

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Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].