Crypto stocks down after bitcoin slump
Crypto-related stocks across U.S. and European markets plummeted Friday, reacting to Bitcoin’s sharp decline, which saw the leading crypto drop below $80,000, News.Az reports citing Investing.
As of 06:20 am ET, Bitcoin is trading at $80,186, down 5.3% on the day.
The market’s reaction underscored the tight correlation between Bitcoin’s price and the performance of publicly traded crypto companies.
In the U.S., MicroStrategy, heavily invested in Bitcoin, saw a 2.2% drop. Coinbase (NASDAQ:COIN), a leading crypto exchange, fell by 3.6%, reflecting decreased trading activity. Mining companies also took a hit: Riot Platforms (NASDAQ:RIOT) and MARA Holdings both declined by 3.4%, while Bit Digital fell by 3.4%, CleanSpark (NASDAQ:CLSK) by 2.6%, and Hut 8 by 3.8%.
European markets followed suit. Germany’s Northern Data decreased by 1.8%. Sweden’s Safello experienced a significant 6.3% drop, and Swissquote, offering crypto trading, fell sharply by 8.8%, indicating investor anxiety.
The downturn mirrors Bitcoin’s 25% decline from its peak. Analysts have attributed the slump to profit-taking and macroeconomic uncertainties such as tariffs and inflation.
The performance of crypto-related stocks remains intrinsically linked to Bitcoin’s movements, making them vulnerable to market swings.
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