Bitcoin’s Decline Hits Hard on US Listed Crypto Stocks

In the premarket on Friday, shares of companies involved in the cryptocurrency companies suffered sharp drops as Bitcoin resumed its downward trend for the fourth straight day. 

The top cryptocurrency had a 6.5% decline to $54,450, its lowest level since February. It then momentarily dipped below $54,000 before making a small comeback.

MicroStrategy Inc. (MSTR), a company well-known for having large Bitcoin holdings on its balance sheet, suffered large losses in premarket trading. The stock of the corporation fell more than 6%, or 6.53%, to close at $85.09. 

Bitcoin mining firms also faced considerable declines. Riot Platforms (RIOT) saw its shares fall by 7.4%, while Marathon Digital (MARA) suffered an even larger drop of 8.8%. Additionally, Marathon Digital’s mining output decreased from 616 BTC in May to 590 BTC in June, indicating operational struggles amid the volatile market.

A significant cryptocurrency exchange, Coinbase (COIN), witnessed a 5.71% decrease in its stock price during the pre-market session, landing at $212.10. The ongoing unloading from Cathie Wood’s Ark Invest compounded this decline and adversely affected Coinbase’s stock performance.

In addition, the stock prices of Cipher Mining (CIFR), and CleanSpark (CLSK) dropped by more than 8%.

The fall of Bitcoin is correlated with an important development concerning the now-defunct cryptocurrency exchange, Mt. Gox. In anticipation of creditor repayments, Mt. Gox moved 47,228 BTC, or $2.6 billion, from cold storage to a new wallet. Additionally, the defunct exchange disclosed to some creditors the distribution of Bitcoin Cash (BCH) and Bitcoin (TCC) payments.

Liquidations tied to long positions exceeded $590 million, adding to market pressure. The broader cryptocurrency market also saw significant losses: Ethereum fell about 8%, XRP dropped 10%, Cardano fell 12%, and Solana lost 5%, reflecting investor pessimism and risk aversion.

The cryptocurrency market is highly sensitive to events like the Mt. Gox transfer, which recently led to declines in Bitcoin and related stocks. Market fluctuations are likely to continue as investors watch for new economic data and corporate earnings reports.

Also Read: Brace for Mt. Gox Creditors 99% Bitcoin Sell-off: Analyst