Sign In

Crypto-Exposed Stocks Sink Amid Bitcoin’s Decline, Broader Market Rout

The stock declines come as the price of bitcoin has fallen almost 11% in the past 24 hours, trading below $40,000 for the first time in months.

Cryptocurrency stocks, including miners and exchanges, were falling as bitcoin, ether and other key cryptocurrencies sank on Friday.

Crypto exchange Coinbase (COIN) was down about 10%, while MicroStrategy (MSTR), which held about 124,391 bitcoins on its balance sheet as of late December, fell about 8%. Shares of Robinhood (HOOD), whose crypto trading revenue has increased significantly in the last year, were down about 4%.

The stock declines comes as bitcoin has fallen almost 11% in the past 24 hours to $38,644, trading below $40,000 for the first time in months. Ether fell about 13% to roughly $2,804 over the same time period, while Solana’s SOL and Cardano’s ADA were both down about 14%.

Shares of publicly traded miners including Hive Blockchain (HIVE), Hut 8 Mining (HUT), Marathon Digital Holdings (MARA), Riot Blockchain (RIOT) and Bitfarms (BITF) were down by at least 5% in Friday’s trading.

Cryptocurrency stocks were also falling amid a broader stock market rout, with technology shares bearing the brunt of the recent downtrend. The tech-heavy equity index Nasdaq has fallen 5% this week and was down 1% on Friday. The index fell through some key technical support levels, including the 200-day moving average, for the first time since April 2020, Craig Erlam, senior market analyst at Oanda Corp, told clients in a note on Friday.

Meanwhile, Erlam noted that bitcoin was “getting pummeled, hit by another wave of risk aversion in the markets that has pushed the price below $40,000 and probably exacerbated the move in the process.”

This article was originally published on Coindesk by Michael Bellusci

Share to Social Media