Bitcoin miner stocks drop up to 13% amid worst Wall Street selloff since July
Bitcoin miners led a sharp fall on Wall Street
Shares of several Bitcoin mining companies dropped up to 13% on Wednesday, falling alongside a broader selloff in US stocks driven by hotter-than-expected inflation data.
The S&P 500 fell 1.1%, marking its biggest one-day decline since July 29. The Nasdaq Composite dropped 1.9%, its worst day since July 23. The Dow Jones Industrial Average fell 0.1%.
The selling hit tech and AI infrastructure companies hardest. AI-focused data center operator CoreWeave fell 16%, AI infrastructure provider Nebius fell 11%, and Oracle fell 9%.
What the mining stocks lost
- TeraWulf fell 12.64%
- Core Scientific fell 12.44%
- Cipher Mining fell 12.35%
- IREN fell 12.2%
- Riot Platforms, Bitdeer Technologies, MARA and CleanSpark also declined
Several of these mining companies have expanded into AI infrastructure, which makes them more exposed to the same rate-sensitive pressures hitting the broader tech sector.
What the inflation data showed
US consumer prices rose 3.7% in September from a year earlier, according to the source article. That exceeded economists' expectations of 3.6% and was well above the Federal Reserve's 2% target. Higher gasoline prices linked to the conflict in the Middle East were cited as a factor.
The inflation report increased expectations that the Federal Reserve would raise interest rates in October. The implied probability of a rate hike briefly exceeded 50% on Wednesday before falling back.
What the Fed said
San Francisco Federal Reserve President Mary Daly told Reuters that while further rate hikes were likely needed to bring inflation under control, there was no urgency to act in the current meeting.
"I don't feel urgent that we have to decide with a limited set of information. I think we have the time that we need," Daly said, according to the article.
Why this matters for Bitcoin miners
Higher interest rates increase borrowing costs, which can weigh on companies that rely on debt to finance expansion. Many AI infrastructure companies, including several Bitcoin miners that have pivoted or added AI operations, depend on borrowed money to build data centers. The broader tech selloff triggered by inflation data has pulled mining stocks down with it.
What is still unclear
It is not clear whether the Federal Reserve will raise rates at its next meeting. Market expectations shifted on Wednesday, but Daly's comments suggest the central bank may wait. The article notes that the implied probability of an October rate hike retreated after briefly exceeding 50%, but no final decision has been announced.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
Related Posts
Banks Want More: Trade Groups Demand Stricter Stablecoin Limits in Clarity Act
Pump.fun Replaces Cashback with Holder Rewards for Token Launches
