Crypto Stocks Plummet Amid Rising Odds of Fed Rate Hike

Crypto stocks have been experiencing a decline in value over the past few days, with MSTR, COIN, and HOOD showing significant drops. The main reason for this slowdown is the rising odds of a potential Fed rate hike, which has changed market expectations from four rate cuts to an increase by the end of 2026.

According to recent reports, the Bank of America has warned about a possible Fed rate hike amid rising oil prices, and the Kobeissi Letter has highlighted a 50% chance of an interest rate increase. This shift in expectations is contributing to a slowdown in crypto-related stocks despite easing geopolitical tensions.

The rise in interest rates is also reflected in the 10-year Treasury yield, which has increased by about 40 basis points since the Iran conflict began. This has driven mortgage rates to new highs in 2026 and signals tighter financial conditions globally.