Bit Digital, Inc. (BTBT) stock plummeted 5.12% on Thursday, underperforming the broader market as cryptocurrency-related stocks faced selling pressure following the Federal Reserve's cautious outlook on interest rate cuts.

The decline in Bit Digital shares came amid a broader crypto selloff, with Bitcoin briefly dipping below $100,000 and other major digital assets like Ether and Dogecoin also struggling. The Federal Reserve's decision to raise interest rates for the third consecutive time, coupled with Fed Chair Jerome Powell's comments suggesting more progress is needed on inflation before further monetary policy easing, weighed on speculative investments like cryptocurrencies and crypto-related stocks.

While crypto stocks initially rallied in premarket trading, with Bit Digital rising 4%, the gains were quickly erased as traders digested the Fed's hawkish stance. The prospect of higher interest rates for longer is seen as a headwind for high-risk assets like cryptocurrencies, which had enjoyed a strong rally in recent months amid expectations of a more accommodative Fed policy.