Crypto stocks fell in morning trading. CEA down 14%; BMNR and BTCS down 8%; Tron and Bullish down 7%; Circle and MARA fell 6%.

The selloff likely reflects a buildup of excess leverage in the aftermath of Thursday’s Fed decision, Kaiko head of research Adam Morgan McCarthy told Barron’s.

“Funding rates seem to have risen since last week’s Fed meeting, suggesting some speculation occurred after the cut,” he said.

“There was excess leverage from those speculative bets and the slight decline earlier triggered some liquidations that had a cascading effect,” he added.

The Fed cut rates by a quarter point on Thursday, which was the first time it had lowered borrowing costs in 2025. But Chair Jerome Powell labeled the decision a “risk-management cut,” suggesting the central bank will move cautiously rather than aggressively easing monetary policy.