Below $111K After GDP Revision; SOL, DOGE, AVAX, SUI Lead Decline

Crypto prices took another leg lower on Thursday while crypto-related stocks sold off after U.S. economic growth was revised sharply higher.

The U.S. government reported that gross domestic product expanded at a 3.8% annualized rate in the second quarter, up from 3.3% in the previous estimate and well above the 3% initially reported.

Alongside, initial jobless claims tumbled to 218,000 from 232,000 the previous week and well below expectations for 235,000 — putting into question the idea that the employment market is weakening.

The much-stronger than anticipated data tapered expectations for the Federal Reserve cutting interest rates further next month. Traders now assign a 17% chance the Fed keeps rates unchanged, up from 8% a day earlier, according to the CME FedWatch.

The 10-year U.S. Treasury yield surged to nearly 4.20% following the reports, highest in three weeks. That helped send U.S stocks lower, with the Nasdaq sliding more than 1%. It’s since trimmed that loss to 0.5%.

Already trading weak over the past few days, BTC$110,472.54 plunged below $111,000 to its lowest price since early September before reversing to $111,500, down 1.6% over the past 24 hours. ETH$3,916.60 dipped below $4,000, down 4.5% over the past 24 hours, while SOL$198.04, DOGE$0.2264, AVAX$29.67, SUI$3.2056 suffered even steeper declines.

After strongly outperforming bitcoin for several months, ETH has given up major ground, with the ETH/BTC ratio having returned to flat year-to-date versus up 20% four weeks ago.

Solana’s (SOL) has been another recent favorite amid hype of newly formed digital asset treasury company’s and increased corporate adoption. It, though, is lower by 6% over the past 24 hours and nearly 20% over the last week.

Stocks lower

Crypto-related stocks fell sharply across the board Thursday. Strategy (MSTR), the largest corporate bitcoin holder, slid 4.5%, while crypto exchange Coinbase (COIN) fell 4.1%. Miners were hit even harder: Cipher Mining (CIFR), despite an early rally on Google AI hosting deal news, was down 9.4%, while HIVE Digital (HIVE), Bitdeer (BTDR), Bitfarms (BITF) plunged 6%-8%.

Stablecoin issuer Circle (CRCL) also retreated 4.4% and Galaxy Digital (GLXY) slid 3.7%, extending the weakness across the sector.