U.S. equities posted their steepest one-day decline since July, pulling a suite of Bitcoin mining companies down by roughly 12%-13%.
Market backdrop
The S&P 500 dropped 1.1%, marking its largest daily loss since July 29, while the Nasdaq Composite fell 1.9%, its biggest slide since July 23. The Dow Jones Industrial Average was relatively flat, slipping 0.1% over the session. The sell-off was led by technology and AI-related firms, with data-center operator CoreWeave down 16%, AI-infrastructure provider Nebius off 11%, and Oracle shedding 9%.
Impact on mining companies
Bitcoin miners were not immune to the broader market weakness. Companies that have diversified into AI-focused data centers saw sharp declines: TeraWulf slid 12.64%, Core Scientific fell 12.44%, Cipher Mining dropped 12.35%, and IREN lost 12.2% in a single session. Other miners such as Riot Platforms, Bitdeer Technologies, Marathon Digital (MARA) and CleanSpark also recorded double-digit losses.
Inflation and rate expectations
September’s consumer-price index rose 3.7% year-over-year, surpassing the 3.6% forecast and well above the Federal Reserve’s 2% target. The unexpected rise, driven partly by higher gasoline prices linked to the Middle-East conflict, revived speculation that the Fed may raise rates in October. At one point, the market’s implied probability of an October hike briefly topped 50% before easing. San Francisco Fed President Mary Daly cautioned that further tightening is likely needed but emphasized there is no immediate urgency.
Why it matters
The convergence of a broad equity sell-off, hotter inflation readings and looming monetary tightening is testing the resilience of Bitcoin mining firms that rely heavily on debt to fund AI-related data-center expansion. Higher borrowing costs could pressure profit margins and slow the sector’s growth, while the sharp market reaction underscores the sensitivity of crypto-related stocks to macroeconomic shocks.
