Crypto-linked stocks edge down premarket after Bitcoin hits one-month low

Investing.com -- Shares in cryptocurrency-exposed stocks were broadly lower in premarket U.S. trading on Wednesday following a dip in the price of Bitcoin to a one-month low.

By 06:54 EST (10:54 GMT), digital coin exchange platform Coinbase (NASDAQ:COIN ) had fallen by 0.4%. Crypto miner Cipher Mining (NASDAQ:CIFR ) had dipped by 2.2%, while peers CleanSpark (NASDAQ:CLSK ), Marathon Digital (NASDAQ:MARA ) and Riot Platforms (NASDAQ:RIOT ) dropped by 2.2%, 1.7%, and 1.0%, respectively.

Sentiment was dampened by weaker-than-expected results from the Institute for Supply Management's monthly measure of US manufacturing activity, which stoked fears of a potential slowdown in the world's largest economy.

The growth concerns drove the steepest selloff in a month on Wall Street on Tuesday as US investors returned from their Labor Day holiday.

Against this backdrop, the price of Bitcoin , the world's most well-known cryptocurrency, decreased by more than 4% at one point on Wednesday, before tracing back some of those losses. In the wider crypto market, Solana , Cardano and Dogecoin all dropped as well.

The global crypto market cap dipped below $2 trillion, declining by just under 3.6% over the last day, according to crypto price tracking website CoinMarketCap.

Looming ahead is the publication of the much-anticipated August nonfarm payrolls report on Friday, which is expected to play into how Fed Chair Jerome Powell approaches an expected shift away from a focus on taming inflation to preparations aimed at guarding against job losses. Powell said in August that the "time has come" to adjust monetary policy due to potential "downside risks" facing the US jobs picture.

Lower rates could bode well for cryptocurrencies, given that they free up more liquidity for speculative trade.

According to the CME's closely-monitored FedWatch Tool, analysts are all but convinced the Fed will roll out a 25-basis point reduction in borrowing costs at the central bank's upcoming two-day gathering from Sept. 17-18. Interest rates currently stand at a 23-year high of 5.25% to 5.5%.

Source: Investing.com