Crypto-related stocks, beaten down over the past weeks, gained ground Friday, staging a relief rally.
Circle (CRCL) led the advance climbing by around 7%. Even after the bounce, the stablecoin issuer is still nearly 50% below its mid-May peak.
Coinbase (COIN) and crypto-friendly brokerage Robinhood (HOOD) gained 4%-5%, while Bullish (BLSH) — the institutional crypto platform and parent company of CoinDesk — rose about 6%. Custodian BitGo (BTGO) was 6.8% higher. Canton Equity Partners II (CEPT), the SPAC planning to merge with tokenization firm Securitize, jumped more than 11%.
The gains came as broader markets remained mixed. The tech-heavy Nasdaq 100 index was down about 0.3%, though it had recovered from steeper losses earlier in the session, while the S&P 500 edged modestly higher. Bitcoin (BTC) stabilized around $60,000 after hitting a fresh 20-month low on Thursday.
What may have helped ease the pressure on risk assets is improving consumer sentiment and cooling inflation expectations.
The University of Michigan's consumer sentiment index rose about 10% from May, with gains across income groups and political affiliations. Consumers also grew more optimistic about the economy over the next five years, with that measure jumping 16% as concerns over a prolonged Middle East conflict eased.
Inflation expectations edged lower but remained elevated. Consumers now expect inflation to run at 4.6% over the next year, down from 4.8% in May, while long-run inflation expectations fell to 3.3% from 3.9%.
Under new Chairman Kevin Warsh, the U.S. Federal Reserve last week shocked investors and sent already reeling crypto markets tumbling even further with its surprisingly hawkish turn.
As the reverberations from the Fed's policy statement, revised economic forecasts, and Warsh's post-meeting press conference last Wednesday were digested, markets quickly began pricing in the certainty of not just one, but perhaps multiple central bank rate hikes this year.
Nine days on, though, markets have reassessed.
The two-year Treasury yield — which, due to its short duration, is generally seen as an important indicator of where Fed policy is headed — has returned to 4.07%. It had soared to 4.23% just days ago.
The 10-year Treasury yield at 4.36% is actually five basis points lower than its level prior to the Fed meeting.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on coindesk.com
