Crypto-related U.S. stocks fell in pre-market trading as market participants continued to digest President Donald Trump’s Friday selection of Kevin Warsh as his nominee for the Federal Reserve chair, spilling over into a sharp crypto sell-off over the weekend.
Strategy ( MSTR ), the largest publicly traded holder of bitcoin, fell more than 6%, while Galaxy Digital ( GLXY ) fell over 7%. Bitcoin mining and AI-related companies are also weaker, with IREN (IREN) and Cipher Mining (CIFR) both losing around 4%. Crypto exchange Coinbase (COIN) is also lower by around 4%.
Volatility continues to rise, with the Volatility S&P 500 Index (VIX) up 10% on the day. The Volmex Implied Volatility Index has risen over the past week, rising from 40 to 50. Implied volatility reflects the market’s expectation of future price swings, with higher readings indicating traders are pricing in greater uncertainty and bigger moves ahead.
Bitcoin is up about 1% on the day and is trading near $77,000 after falling as low as $74,500 on Saturday. Precious metals remain under pressure, with gold down 4% to $4,700 per ounce, and silver also fell 4% to $82 per ounces. The oil is also weaker. West Texas Intermediate futures fell 5% to $62 per barrel.
U.S. stock index futures, however, rebounded slightly, with the Invesco QQQ ETF ( QQQ ), which tracks the Nasdaq 100 index, down less than 1% in premarket trading.
The DXY index, which measures the dollar’s strength against a basket of major currencies, has pulled back slightly to 97. CoinDesk Research noted that bitcoin and the DXY showed a clear inverse relationship last week. Once again, bitcoin is ticking higher as the dollar eases.
