The cryptocurrency market is experiencing a significant downturn, with bitcoin miners bearing the brunt of the sell-off. As the US Federal Reserve begins its two-day policy meeting, expectations of an interest rate cut have diminished, leading to a drop in bitcoin prices. The world's largest crypto by market cap has fallen 5.5% to $66,196.38 over the past 24 hours, with bitcoin miners' stocks taking a hit.

Hive Digital Technologies (HIVE) leads the decline, with its stock down 8.3% at publication time, followed by Hut 8 (HUT), Cleanspark (CLSK), Riot Platforms (RIOT), and Marathon Digital (MARA), all down more than 5%. MicroStrategy (MSTR), a data and software company with a large BTC position, has also dropped 6%. The price fall has led to an increase in open interest in bitcoin, reaching over $1.5 billion, indicating a "high-risk situation."

However, Iris Energy (IREN) is bucking the trend, trading higher by 10% and up nearly 130% over the past month. This surge can be attributed to its early adoption of high-performance computing and the recent news of bitcoin miner Core Scientific (CORZ) signing 12-year contracts with AI Hyperscaler CoreWeave, expected to generate $3.5 billion in revenue. According to JPMorgan analysts, this development bodes well for Iris Energy, as hyperscalers and AI firms explore alternatives, including leasing power and data center capacity from bitcoin miners.

The current situation highlights the interconnectedness of the cryptocurrency market and traditional finance. As the Fed's policy meeting concludes, all eyes are on Chairman Jerome Powell's press conference, which may provide insight into the future of interest rates and the impact on the crypto market. Meanwhile, bitcoin miners continue to face challenges, with Hive Digital Technologies, Hut 8, and others feeling the pressure. However, Iris Energy's resilience offers a glimmer of hope, demonstrating the potential for innovation and adaptation in the face of adversity.