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Bitcoin miners plunge up to 13% in Wall Street’s worst selloff since July
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US stocks suffered their sharpest selloff since July on Wednesday as hotter inflation data hit technology and AI infrastructure companies. Bitcoin miners were among the hardest hit. TeraWulf, Core Scientific, Cipher Mining and IREN each lost more than 12%.
The S&P 500 fell 1.1%, its biggest one-day decline since July 29. The Nasdaq Composite fell 1.9%, its biggest drop since July 23. The Dow Jones Industrial Average slipped 0.1%. CoreWeave fell 16%, Nebius 11% and Oracle 9%.
Of the 23 AI infrastructure stocks tracked by PRISM’s AI Data Center and Infrastructure Index, 21 declined Wednesday. The average loss was 7.46%. TeraWulf fell 12.64%, Core Scientific 12.44%, Cipher Mining 12.35% and IREN 12.2%. Riot Platforms, Bitdeer, MARA and CleanSpark also fell.
The selloff matters because higher interest rates could raise borrowing costs for AI infrastructure companies. Many rely heavily on debt to finance data center expansion. Several Bitcoin miners have also expanded into AI infrastructure.
US consumer prices rose 3.7% in September from a year earlier, exceeding expectations of 3.6%. That remained well above the Federal Reserve’s 2% target. Higher gasoline prices linked to the Middle East war were blamed.
The data increased expectations of an October Federal Reserve rate hike. The implied probability briefly exceeded 50% on Wednesday before retreating. San Francisco Fed President Mary Daly told Reuters further hikes were likely needed, but there was no urgency this month. “I don’t feel urgent that we have to decide with a limited set of information,” Daly said.
Markets now watch Fed signals and inflation data for direction. AI and crypto infrastructure stocks may remain volatile if rate-hike odds rise. Borrowing costs and data center financing could face further pressure.
