Crypto stocks tumble on Tuesday as investors go into risk-off mode
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Crypto stocks were among the hardest hit on Tuesday as investors dumped tech names.
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3 min read
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cryptocurrency
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August 19, 2025
05:36 PM
CNBC
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The Coinbase logo is displayed on a mobile phone screen with stock market percentages in the background.Idrees Abbas | Sopa Images | Lightrocket | Getty ImagesCrypto stocks suffered on Tuesday as investors fled stocks and riskier corners of the market.Among crypto exchanges, Coinbase and eToro fell more than 5% each, while Robinhood and Bullish both dropped more than 6%
Crypto financial services firm Galaxy Digital dropped 11%
In the burgeoning sector of crypto treasury firms, Strategy lost 7%, SharpLink Gaming slid 8%, Bitmine Immersion slumped 12% and DeFi Development tumbled 15%
Stablecoin issuer Circle lost 5%.Meanwhile, the price of bitcoin pulled back nearly 3% to just over $113,000
Ether was down more than 4% to the $4,100 level, according to Coin Metrics.Stock Chart IconStock chart iconBitcoin over the past dayInvestors appeared to rotate out of names on Tuesday
The sector had seen a boost last week as traders weighed the spect of more interest rate cuts
Also, bitcoin touched an intraday all-time high near $125,000 last week.On Tuesday, the Nasdaq Composite was down more than 1%, weighed down by declines in Nvidia and other heavyweights.The crypto market tends to be vulnerable to moves in stocks due to their growth-oriented investor base, narrative-driven price action, speculative nature and tendency to thrive in low-interest rate environments.This week, investors are watching the Federal Reserve's annual economic symposium in Jackson Hole, Wyo. for clues around what could happen at the central bank's remaining policy meetings this year
If Fed Chair Jerome Powell signals more dovish policy could be ahead, crypto may bounce."With Powell speaking at Jackson Hole, we typically see fit-taking ahead of his remarks," said Satraj Bambra, CEO of hybrid exchange Rails. "Any time there's communication uncertainty from the Fed, you can generally expect some fit-taking as traders de-risk their positions."Crypto stocks have had a solid run in recent months — thanks to the addition of Coinbase in the benchmark S&P 500 index, the successful IPO of Circle and the GENIUS Act stablecoin framework becoming law
However, investors expect a pullback in August and through the September Fed meeting, where they hope to see central bank policymakers implement rate cuts.Don't miss these cryptocurrency insights from CNBC : Crypto may be coming to 401(k) plans, but it'll be a while before it's easily accessibleExpect the crypto rally to cool in August as new tariffs ratchet up macroeconomic concernsEther treasury companies are just getting started, could own 10% of coin one day, says Standard Chartered
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