Crypto Stocks Plunge Amid Decline in Market Sentiment
Highlights
- Crypto stocks are recording lows in the market.
- These lows come on the heels of lowered crypto prices.
- Bulls remain under pressure citing potential rate cuts and spot ETF inflows.
Crypto stocks are trading in the red zone amid the recent correction in the digital asset market. This bearish trend comes in a week that saw a slight recovery as optimism grew among stocks. Institutional investors remain a driving factor in the market following speculations on inflation data going in Q3 2024.
From stocks exposed to the market to Bitcoin (BTC) miners like Marathon Digital, crypto stocks posted sell-offs amid mixed trading on Wall Street.
Crypto Stocks Plunge
MicroStrategy (MSTR), a company exposed to the price of Bitcoin has plunged in the last 48 hours following the recent decline in BTC price. MSTR trades at $1,198, a 5% drop in the last 24 hours and a 6% weekly plunge. With increased BTC acquisitions, the price struggles from its Q1 2024 highs. At press time, Bitcoin’s price stands at $60,421.
Coinbase (COIN), the largest cryptocurrency exchange by volume in the United States, is down 3.79% today amid reduced trading volumes. The asset trades at $202.40, a 10% decline this week. The present state of assets depicts the fall in crypto stocks. In previous weeks, COIN posted a rally based on its Q1 2024 earnings which saw doubling revenues.
Bitcoin miner, Marathon Digital (MARA), is down 9.92% today wiping off weekly gains as the price of BTC plummets. Bitcoin miners are hit with low market sentiments as most stocks move in the red zone. The Bitcoin halving momentum which saw miners reposition holdings helped mining companies gain ground in Q1 2024.
Canadian-based miner Hut 8, is also down 2.93% alongside CleanSpark and Core Scientific. Both assets reported losses of 3% and 6% respectively.
Light At The End of The Tunnel?
While recent positions for crypto stocks remain low, bulls tip a change in narratives on the heels of developments in the financial market. Wall Street experts project interest rate cuts by the Federal Reserve with the first coming in September. Should these factors play out, the stock market will see a boost in institutional inflows.
Furthermore, an increased price of Bitcoin will lead to renewed momentum for crypto stocks. Recent projections from traditional players add to the drive of bulls.
Also Read: Top 10 Holders of BlackRock Spot Bitcoin ETF (IBIT)
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