- Bitcoin’s price has dropped below $39,000, hitting its lowest level since December, leading to declines in crypto companies’ stock prices.
- Coinbase’s stock fell 5% during pre-market trading as Bitcoin declined, and analysts downgraded its shares to “underweight.”
- Crypto mining companies like Marathon Digital Holdings and Riot Platforms saw stock declines of 4-5% due to lower Bitcoin prices reducing miners’ revenue in USD terms.
The crypto market has seen a significant downturn in recent days. Bitcoin’s price has dipped below $39,000, hitting its lowest level since December. This drop has led to declines in the stock prices of several major crypto companies.
The stock price of Coinbase, a major US-based cryptocurrency exchange, fell by 5% during pre-market trading as Bitcoin declined. The company’s shares have also been downgraded to “underweight” by analysts at JPMorgan.
Crypto Miners’ Stocks Also Affected
In addition to exchanges like Coinbase, crypto mining companies have also seen their stock prices fall during this market downturn. For example, Marathon Digital Holdings and Riot Platforms saw 4-5% pre-market declines. Hut 8 and CleanSpark also saw drops of around 2-3% early on.
Lower Bitcoin Prices Reduce Miners’ Revenue
According to Julio Moreno of CryptoQuant, lower Bitcoin prices and fees have reduced the daily revenue of miners substantially when measured in USD terms. This explains why publicly traded mining companies have seen their stock valuations decrease.
Conclusion
The broader decline in crypto asset prices, led by Bitcoin’s drop below $40k, has put pressure on the stock prices of publicly traded crypto companies like Coinbase and crypto miners. Analyst downgrades of Coinbase’s shares and reductions in mining revenue are contributing to steeper declines for these stocks. It remains to be seen whether the crypto market will rebound or continue its downward trajectory in the near term.
