US stock indices ended Monday's trading session in the red following a turbulent day of trading.
The macroeconomic environment continues to set the tone for markets — US inflation hit a 41-year high of 8.6% — and the Monday trade was notably volatile. The S&P 500 closed down 3.88% while the Nasdaq composite lost 4.68% and the Dow Jones finished down 4.10%.
Cryptocurrency markets were similarly choppy as bitcoin (BTC) and ether (ETH) tested multi-year lows and the floor price — the cost of the cheapest available piece in a collection — of various blue-chip NFT projects also slid amid the market weakness.
Crypto-related stocks, those with exposure to cryptocurrencies on their balance sheet or with business models closely linked to blockchain technology, suffered twofold. Coinbase (COIN), MicroStrategy (MSTR), Block (SQ) and Tesla (TSLA) all ended the day down — with the last three seeing their bitcoin holdings dip deeper into the red.
Tesla closed the day down 7.10%, Coinbase lost 11.41% and Jack Dorsey’s Block (formerly Square) lost 12.68%.
However, the biggest loser on The Block’s list was perma-bull Michael Saylor’s MicroStrategy, which saw its stock fall 25.18%. The company currently owns 129,218 BTC across two corporate entities, at an unrealized loss of about 18%.
Based on the current economic headwinds, the tone for the week seems perhaps unlikely to change as the US Federal Reserve is set to make its latest decision on interest rates public this week.
As for Wall Street predictions, JP Morgan is expecting an increase of 75 basis points, although the Fed has previously said that it would avoid hikes above 50 basis points.
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