Crypto Stocks Slide as Post-Rally Sell-Off Hits MSTR, COIN, CRCL and Others
By Helene Braun and Krisztian Sandor | Updated August 25, 2025, 8:23 p.m. ET
Crypto-linked stocks experienced notable declines on Monday, following a sharp retreat in cryptocurrency prices that unfolded over the weekend. The sell-off marked a reversal from Friday’s significant rally triggered by Federal Reserve Chair Jerome Powell’s comments raising prospects for a potential interest rate cut in September.
Market Overview: Post-Rally Profit Taking
Stocks tied to the digital asset sector, including Marathon Digital Holdings (MARA), Circle (CRCL), and Strategy (MSTR), led Monday’s downturn. Marathon and Circle saw approximately 6% declines each in early trading, while Bullish (BLSH) dropped 5% and Strategy slipped 3%. Other publicly traded platforms with crypto exposure, such as Coinbase (COIN), eToro (ETOR), and Robinhood (HOOD), also traded lower.
This decline reflected broader pullbacks in the cryptocurrency market itself. Bitcoin (BTC) and Ether (ETH), the top two digital currencies by market capitalization, fell about 4% and 5.5% respectively within 24 hours, slipping from their weekend highs.
Previous Rally Fueled by Fed Optimism
Friday’s rally had surged upward after Fed Chair Jerome Powell’s comments suggested a more dovish stance, fueling hopes that the central bank might reduce interest rates next month. The news briefly boosted risk appetite across global financial markets, sending cryptocurrencies and equities higher in tandem.
However, Monday’s retreat suggested lingering caution among investors. Traditional stock market indices such as the S&P 500, Nasdaq, and Dow Jones Industrial Average remained mostly unchanged, as did gold prices and U.S. 10-year Treasury yields, indicating a mixed macroeconomic backdrop.
Market Strategists Weigh In
Joel Kruger, market strategist at LMAX Digital, commented on the situation: “The crypto market is grappling with macro pressures: shifting Fed signals, dollar strength, and risk reduction. While Powell hinted at rate cuts, the nuance and less dovish undertone left markets jittery.”
Further adding to market sensitivity, investors are closely watching upcoming U.S. economic data and corporate earnings. Nvidia’s earnings report on Wednesday is expected to be an important sentiment gauge for the broader stock market. In addition, Thursday’s Gross Domestic Product figures, jobless claims data, and Friday’s core Personal Consumption Expenditures (PCE) report will further influence market direction, explained Jake Ostrovskis, OTC trader at crypto firm Wintermute.
Broader Crypto and Market Context
The recent volatility underscores the ongoing uncertainties faced by the crypto sector as it navigates macroeconomic pressures including Federal Reserve policy shifts, evolving regulatory landscapes, and fluctuating investor sentiment. While digital asset prices remain sensitive to broader market cues, institutional adoption and specific developments in blockchain technologies continue to shape long-term outlooks.
Helene Braun is a New York-based markets reporter at CoinDesk, focusing on Wall Street, spot bitcoin exchange-traded funds, and crypto market updates.
Krisztian Sandor covers U.S. markets, specializing in stablecoins, tokenization, and real-world assets for CoinDesk.
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