U.S. Growth Hits 3.4%, and PCE Inflation Climbs to 3.6%. Crypto Stocks Slip Again Before Coinbase and Strategy Report: Can Tonight’s Earning...

The U.S. economy grew at a 3.4% annual rate in the third quarter and inflation picked up to 3.6% in September, the Bureau of Economic Analysis reported on Thursday, October 29, hours before crypto stocks Coinbase and Strategy report earnings.

The sector was already down before the data and barely moved on it. Coinbase traded 2.4% below Wednesday’s close before the open, Strategy 2.3% and Circle 2.5%. The bigger story is the month: bitcoin miners are down 31% to 37% in October and Coinbase 15%, against a 4% drop for Bitcoin itself.

So what did the data show, why are the shares falling so much harder than the coin they track, and what do tonight’s results need to show?

JUST IN: The US still has an inflation problem and it's getting worse again.PCE Inflation rose to 3.6% in September. That's the highest since May. Core PCE Inflation (excludes food and energy) ticked up to 3.1%. That's also the highest since May.Bottom line: Inflation is… pic.twitter.com/v7T20hczWt

— Heather Long (@byHeatherLong) October 29, 2026

What Did the GDP and PCE Data Show?

A strong economy with sticky inflation, which is the combination that keeps the Fed leaning toward a hike. The two releases, both out at 8:30 a.m. ET:

• Growth: real GDP rose at a 3.4% annual rate in the third quarter, up from 2.2% in the second, driven by investment, consumer spending and government spending.
• Inflation: the PCE price index rose 0.5% in September and 3.6% from a year earlier, up from 3.4% in August. Core PCE, which excludes food and energy and is the Fed’s preferred gauge, rose 0.3% on the month and 3.1% on the year.
• Households: spending rose 0.5% while income rose only 0.2%, and the saving rate fell to 3.8%.

Both inflation readings matched forecasts, and both accelerated. Markets had mostly priced that in.

BREAKING: U.S. GDP growth BEATS expectations at 3.4%, while PCE inflation matches forecasts.– Q3 GDP growth: 3.4% vs. 2.2% prior– Headline PCE YoY: 3.6% vs. 3.6% expected and 3.4% prior– Core PCE YoY: 3.1% vs. 3.1% expected and 3.0% priorBoth annual inflation readings… pic.twitter.com/tbfD9QgXk4

— Coin Bureau (@coinbureau) October 29, 2026

Why Are Crypto Stocks Falling Harder Than Bitcoin?

Because they carry Bitcoin’s risk plus their own. From the September 30 close to Thursday’s premarket, Bitcoin is down 4.2% and the Nasdaq 100 tracker QQQ 2.9%. Most of the sector has lost several times that:

Company Ticker Close, Oct 28 Premarket, Oct 29 Since Sep 30 MARA Holdings MARA $7.35 $7.10 −37.3% CleanSpark CLSK $8.58 $8.30 −35.6% Riot Platforms RIOT $14.45 $13.93 −30.9% Galaxy Digital GLXY $19.09 $18.10 −20.4% Robinhood HOOD $91.43 $89.85 −20.1% Coinbase COIN $162.32 $158.49 −15.0% Strategy MSTR $145.16 $141.78 −7.4% Circle CRCL $81.71 $79.69 −3.0%

Premarket prices at 9:03 a.m. ET, from Yahoo Finance.

Crypto shares vs. Bitcoin in October. Source: Yahoo Finance, Binance

Three things are doing the extra damage:

• Miners’ margins: the network’s hashrate is near its record, so each machine earns less. Miners make about 23% less per unit of computing power than a year ago, and a 4% drop in Bitcoin hits a thin margin far harder than it hits the coin.
• Trading revenue: Robinhood’s third-quarter crypto revenue fell 55% to $120 million even as its equity trading boomed. That is the number investors will check first in Coinbase’s report tonight.
• Rates: with the 10-year yield near 5% and a December hike likely, high-volatility growth stocks have less room. These are among the most volatile names on the market.

Circle is the exception. Its revenue comes from interest on the reserves behind USDC, so higher rates help it, and it has held up better than Bitcoin this month.

Discover: Bitcoin Swings Less Than Coinbase and Oracle, Yet Crypto Stocks Move Up to 2.4 Times as Hard

What Do Coinbase and Strategy Need to Show Tonight?

For Coinbase, that trading held up better than Robinhood’s. For Strategy, that its Bitcoin bet still sits above cost. Both report after the close, with Coinbase’s call at 5 p.m. ET.

• Coinbase: the MarketBeat consensus is a loss of about 26 cents a share on $1.19 billion of revenue, below the $1.22 billion it reported for the second quarter, when it missed estimates. Watch the split between trading fees and stablecoin and subscription income, which includes its share of USDC interest.
• Strategy: the result is mostly already known. Its October 5 filing put the third-quarter gain on its Bitcoin at $20.91 billion, with a $1.88 billion deferred tax expense. It held 848,000 BTC at an average cost of $75,440.70.

That cost basis is the number to watch. At $80,108, Bitcoin is about 6% above Strategy’s average price, and down from $83,624 at the end of September, so the fourth quarter has started with a paper loss of roughly $3 billion on the company’s holdings.

Bitcoin itself is holding its October floor. It trades just below its 50-day EMA at $80,799, with support at $79,221, the October 24 low, and resistance at $84,898, the October 21 high.

BTCUSDT 1D chart. Source: Binance

Discover: Bitcoin’s Hashrate Climbs Back Within 7% of Its Record, but Miners Earn 23% Less Than a Year Ago

Thursday’s data gave the Fed more reason to hike in December, and crypto stocks have spent October pricing that in at several times Bitcoin’s pace. Tonight’s results will show how much of the drop was earned. The next test after that is the October jobs report on November 6.

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