Crypto Stocks Drop as Crypto Falls on Reduced U.S. Rate Cut Bets, Balancer Hack

Crypto stocks dropped as crypto fell on reduced U.S. rate cut bets, balancer hack. Forward fell 18%; Tron fell 7%; Cipher Mining, TeraWulf, and Bitfarms fell 6%; BitMine, Riot Platforms, and Bit Digital fell 5%; SharpLink Gaming, CleanSpark, Figure, IREN, and MARA Holdings fell 4%; Coinbase and Strategy fell 3%.

Bitcoin fell to a two-and-a-half-week low as reduced expectations for further U.S. interest rate cuts prompt investors to pull back from riskier assets.

The repricing of rate expectations comes after Fed Chair Jerome Powell said another rate cut in December was not a foregone conclusion at last week's meeting.

A hack of finance protocol Balancer has also hit the crypto sector, draining more than $100 million in digital assets. The selloff in cryptocurrencies is effectively unwinding over-leveraged positions accumulated during October, resulting in a much-needed market correction.

Bitcoin fell to a low of $103,920. Ethereum also hit a three-month low of $3479.77.