Cryptocurrency Stocks in the U.S. Decline in Early Trading Amid Bitcoin Drop
U.S. cryptocurrency-related stocks experienced a downturn in early trading on Friday as the price of bitcoin (BTC) plummeted to its lowest level since February.
Michael Saylor’s tech firm MicroStrategy (MSTR), which holds a significant amount of 210,000 BTC, and bitcoin mining company Hut 8 (HUT) were among the hardest hit, with declines of 8.5% and 9.5% respectively.
Other mining enterprises such as Marathon Digital (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT) saw drops ranging from 6% to 7.5%. Additionally, cryptocurrency exchange Coinbase (COIN) recorded a 6.5% decrease.
Bitcoin is currently trading around $54,400 in Europe, marking a 5.8% decline over a 24-hour period. Earlier, it dipped to as low as $53,600, its lowest point since late February.
This decline coincides with the defunct cryptocurrency exchange Mt. Gox transferring $2.6 billion worth of BTC to a new wallet as it prepares to initiate repayments to creditors after its collapse ten years ago. The movement of such a significant amount of bitcoin has raised concerns among traders about potential mass selling pressure if the recipients decide to offload their coins.
The market volatility underscores the interconnected nature of cryptocurrency-related stocks with the price movements of major digital assets like bitcoin. Investors and traders are closely monitoring these developments as they navigate the evolving landscape of the cryptocurrency market.
For more insights into the cryptocurrency industry and the latest market trends, stay tuned for updates from reputable sources like CoinDesk.
