Coinbase, MicroStrategy & Bitcoin Miners Stocks Extend Losses Ahead US Job Data

In a turbulent premarket session on Friday, July 5, stock of prominent crypto companies experienced significant declines as Bitcoin‘s (BTC) downward spiral intensified for the fourth consecutive day. Earlier today, the Bitcoin price plummeted by 8%, extending below $54,000, marking its lowest point since February. Despite recovering from the dip, Bitcoin’s volatility rattled the market, triggering widespread sell-offs across the crypto sector.

Coinbase, MicroStrategy & Other Crypto Stocks Plummet

MicroStrategy Inc. (MSTR), renowned for holding a substantial amount of Bitcoin on its corporate balance sheet, bore the brunt of the downturn with its shares plummeting over 6% in premarket trading. The MSTR stock plunged 6.53% to $85.09 today.

Similarly, Bitcoin mining firms like Riot Platforms (RIOT) and Marathon Digital (MARA) suffered losses of 5.64% 6.48% and 8.8%, respectively. Moreover, the Bitcoin price is hovering around the breakeven point for miners like Marathon Digital and Iris Energy. Moreover, Marathon Digital’s June mining output decreased to 590 BTC from 616 BTC May.

The above-mentioned factors have raised concerns for the entire miner community while also affecting the miners stocks. Today, the Coinbase (COIN) stock lost 5.71% and was valued at $212.10 in the pre-market session. Earlier, continued offloading from Cathie Wood’s Ark Invest also impacted the stock negatively.

The decline in Bitcoin prices coincided with a significant development involving Mt. Gox, the defunct cryptocurrency exchange. Reports surfaced that Mt. Gox transferred 47,228 BTC, valued at approximately $2.6 billion, from cold storage to a new wallet. Moreover, the collapsed exchange has reported the distribution of BTC and Bitcoin Cash (BCH) payments to part of creditors.

Furthermore, liquidations tied to long positions exceeded $590 million, further accelerating the downward pressure in the market. The broader cryptocurrency market also experienced notable losses, with Ethereum plunging nearly 8%. Meanwhile, Cardano dipped by as much as 12%, and XRP tumbled 10%. Moreover, Solana lost 5% in value, reflecting the bearish sentiment of risk aversion among investors.

Also Read: Crypto Market Crash: Why Bitcoin And Altcoins Are Falling

US Jobs Data & Company Earnings

Looking ahead, market participants are closely watching the upcoming US jobs report for June, scheduled for release later today. Economists anticipate the report to show 195,000 new jobs added, down from May’s figure of 272,000. The unemployment rate is expected to remain steady at 4.0%, while hourly wages are forecasted to increase by 0.3% for June.

These economic indicators could potentially influence market sentiment, particularly in relation to inflation concerns and Federal Reserve policy decisions. In case the Fed remains a hawkish stance after the data, the crypto market and related stocks could take further hit.

Moreover, upcoming earnings reports in August for Coinbase, MicroStrategy, and Marathon Digital will be closely scrutinized by investors. Coinbase Q2 earnings call is scheduled for August 1. Thereafter, MicroStrategy will report its Q2 earnings report on August 6 while Marathon will release the data on August 13. Wall Street analysts expect the firms to beat expectations, which could help in a stock rebound.

Also Read: Breaking: German Govt Unloads Another 1300 Bitcoin To Coinbase, Kraken & Bitstamp