Crypto stocks plunge as inflation spikes overshadow Bitcoin ETF optimism

Share prices of cryptocurrency companies plunged Thursday despite the launch of the first spot Bitcoin exchange-traded funds in the US a day earlier.

Major crypto-linked stocks like Coinbase and Marathon Digital plunged 6.5% and 14% respectively as inflation data showed a bigger-than-expected surge in consumer prices last month, dimming optimism fueled by the SEC approval of spot Bitcoin ETFs. Bitfarms and MicroStrategy also fell heavily.

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Even the futures-based Bitcoin ETFs that were already trading slid, with the ProShares fund dropping 1%. Crypto exchange operators and Bitcoin miners bore the brunt of the selloff as analysts warned of some profit-taking after the massive rally ahead of the SEC nod.

Bitcoin itself pared gains after hitting a two-year high, down 1.5% at $45,946 by 17:30 GMT. The inflation gloom overshadowed the pioneering Bitcoin ETF launch by fund majors like BlackRock, Ark and Invesco that could broaden crypto appeal.