US crypto mining stocks took a hit at the close of trading on May 28, following the release of minutes by the Federal Reserve that indicated growing uncertainty about the country's economic outlook. Despite the stock drops among crypto miners, the broader crypto market remained relatively stable.

The minutes from the Federal Open Market Committee's meeting on May 6 and 7 expressed concerns about potential tradeoffs the Committee might face if inflation proves to be more persistent while the outlooks for growth and employment weaken. The Fed had decided to maintain interest rates steady at 4.25% to 4.50% after its early May meetings due to increased uncertainty about the economic outlook and heightened risks of both higher unemployment and inflation.

On May 28, Riot Platforms (RIOT) closed the trading day down 8.32%, CleanSpark (CLSK) fell by 7.61%, and Mara Holdings closed down 9.61%. However, MARA Holdings managed to bounce back by 2.56% in after-hours trading. Meanwhile, Coinbase (COIN) dropped 4.55%, and MicroStrategy (MSTR) extended its five-day downtrend, falling by 2.14% following a class-action lawsuit accusing company officials of misrepresentation regarding Bitcoin (BTC) investments.

The tension between US President Donald Trump and the Federal Reserve has also been in focus, with Trump publicly criticizing Fed Chair Jerome Powell for not cutting interest rates quickly enough. This tension adds to the overall uncertainty in the market.

Despite the turmoil in the stock market, the crypto market remained relatively stable over the same period. Bitcoin was down 0.90% over the past 24 hours, trading at $107,942 at the time of publication and down 2.06% over the past seven days. The Crypto Fear & Greed Index also improved, climbing three points to 74, indicating increased market sentiment towards "Greed."

Looking ahead, market participants are anticipating the next Federal Reserve interest rate decision on June 18. According to the CME FedWatch Tool, 97.8% of market participants expect rates to remain unchanged.

As the market continues to navigate through economic uncertainties and regulatory concerns, it is essential for investors to conduct thorough research and make informed decisions regarding their investments. The volatile nature of both traditional and crypto markets underscores the importance of staying informed and cautious when making financial decisions.

Source: https://cointelegraph.com/news/crypto-mining-stocks-plunge-federal-reserve-tradeoffs-warning?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound