Crypto-Linked Stocks Fall Worldwide Following Bitcoin, Ether Jackson Hole Reversal

Cryptocurrency-linked stocks and digital assets experienced a decline following a strong rally tied to Federal Reserve Chair Jerome Powell's comments at the Jackson Hole symposium. Bitcoin and Ether retreated from their recent highs, with Bitcoin falling over 2% to around $111,144 and Ether also seeing notable losses, reflecting investor caution amid uncertainty about near-term interest rate cuts. The sell-off extended to equities with significant crypto exposure, such as MARA Holdings, Circle, Coinbase, and others, highlighting the close correlation between crypto and traditional markets. While Powell's remarks initially boosted risk appetite, subsequent market interpretation suggested sustained caution due to potential policy tightening and inflation concerns. Meanwhile, the Dow Jones Industrial Average reached record highs, illustrating a divergence in asset class performance. Analysts emphasize that the market remains sensitive to Federal Reserve signals and macroeconomic conditions, with future regulatory developments and economic data expected to heavily influence digital asset trajectories.