CleanSpark, Inc. (CLSK) saw its stock price plummet by 5.02% during intraday trading on Thursday, as part of a broader decline in crypto-related stocks. The drop comes in the wake of hotter-than-expected wholesale inflation data, which has dampened expectations for interest rate cuts by the Federal Reserve.

The cryptocurrency market experienced mixed performance, with Bitcoin retreating from its new record high of over $124,000. While Bitcoin managed to maintain a slight 0.6% gain, trading around $120,991, several large altcoins and crypto-related stocks faced more significant declines. Ethereum dropped 2.3%, while memecoins like Dogecoin slumped by 7.7%.

CleanSpark's decline aligns with the performance of other crypto mining and blockchain-related companies. Peers such as MARA Holdings and Bit Digital also experienced drops of 3% and 2% respectively. The slump in these stocks appears to be driven by concerns over potential delays in interest rate cuts, which typically make risk assets like cryptocurrencies and related stocks less attractive compared to traditional investments. The unexpected rise in the producer price index has led to speculation that the Federal Reserve may maintain higher interest rates for longer, potentially impacting the crypto sector's growth trajectory.