The Federal Reserve (FED) announced the May FOMC minutes "big dump of mining companies": tariffs are being passed on to consumers, and uncertainty has greatly increased.

The minutes of the latest meeting of the US Federal Reserve showed increased uncertainty about the economic outlook, which led to a general plunge in cryptocurrency mining stocks. However, Bitcoin and the cryptocurrency market as a whole have shown relative resilience. Fed Kashkali: The inflationary impact of Trump tariffs is not a short-term phenomenon, and the Fed does not rush to adjust interest rates) (Background supplement: Trump tariffs are judged to be illegal! U.S. court orders 'ban' White House emergency appeal, Asian stocks cheer in early trading) Shares of U.S. cryptocurrency mining companies generally tumbled on May 28, 2025, largely on the release by the Federal Reserve (Fed) of the minutes of the May Federal Open Market Committee (FOMC) meeting, which noted increased uncertainty about the economic outlook and warned of "difficult trade-offs" ahead. Fed signals caution According to the minutes of the May FOMC meeting, the Fed decided to maintain the benchmark interest rate in the range of 4.25% to 4.50% after the May 6-7 meeting. The minutes highlighted increased uncertainty and made it clear that if inflation persists and economic growth and employment prospects weaken, the Fed will struggle to act, and this prudent wording sends a warning signal to the market and triggers a sell-off in risky assets. Many participants said their business contacts or survey reports alleged that businesses generally plan to pass on some or all of the costs associated with tariffs to consumers. With further uncertainty about the economic outlook, rising unemployment and rising inflation risks rising in tandem, the Committee may face difficult trade-offs. As soon as this speech came out, it triggered a plunge in stocks of cryptocurrency-related industries, and the price of cryptocurrencies themselves was not affected too much, it can be considered that the market is still optimistic about the long-term asset potential of cryptocurrencies, but entities that profit from cryptocurrencies in the short and medium term will suffer setbacks. Mining company performance Riot Platforms (RIOT) shares fell 8.32% on the day, CleanSpark (CLSK) fell 7.61%, and Marathon Digital Holdings fell on the day, according to the data (MARA) plunged 9.61%. Other cryptocurrency-related companies were also affected, with Coinbase (COIN) down 4.55%, while shares of MicroStrategy (MSTR), which faces a class-action lawsuit, also fell 2.14%. In comparison, the S&P 500 lost 0.56% on the same day. Overall Crypto Market Relatively Stable Despite the sell-off in mining stocks, the overall cryptocurrency market has shown relative stability. According to the data at the time of publication, Bitcoin (BTC) has only lost 0.90% in the last 24 hours, trading at around $107,942. Compared to the wild swings in mining stocks, the major cryptocurrencies did not show a synchronized sharp decline. The price of Bitcoin has fallen by about 2.06% in the past seven days. Source: CoinMarketCap Reasons for the divergence in mining and asset market performance Mining companies and crypto companies are extremely sensitive to changes in interest rates and the macroeconomic outlook due to their capital-intensive and highly financing-dependent business characteristics. In addition, the rising difficulty of mining and the rise in energy costs continue to compress its profit margins, resulting in its share price being susceptible to market sentiment and economic expectations. In contrast, the overall cryptocurrency market exhibits varying resilience as it is more driven by a variety of factors, including institutional investor engagement, regulatory policy developments, and market demand. The latest data shows that the Crypto Fear and Greed Index rose 3 points to 74 and entered the "greedy" zone, indicating that the overall market sentiment has not deteriorated significantly due to the decline in mining stocks. In other words, the overall cryptocurrency market has recently suffered from many atmospheric influences, such as market demand driven by micro-strategies, institutional participation and regulatory dynamics, and the Trump family company's recent announcement of the purchase of bitcoin reserves may also be one of the reasons, but these benefits may not necessarily be converted into the stock prices of cryptocurrency mining companies that are far higher risk, focusing on the macro prospects, rather than these short-term benefits, which are essentially the attributes of mining companies. In the face of a complex market environment, investors should take into account the macro policy trend, industry characteristics and the fundamentals of individual companies when evaluating relevant investment targets. Related reports Bauer, don't be afraid! The U.S. Supreme Court issued a holy decree: to protect the independent status of the Federal Reserve, Trump must not arbitrarily remove officials Fed Barr warned: Trump drags the Fed back! Tariff policy will return the economy to the "early days of the epidemic" Why is the Fed sticking to high interest rates? Fed sounding board: Ball is waiting for the "bad enough" recession signal, Goldman Sachs expects to start cutting interest rates in July (Fed announces May FOMC record "mining companies plunge": tariffs are passing on to consumers, uncertainty is increasing) This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".