Cryptocurrency-Linked Stocks Decline as Bitcoin Drops Below $90,000
On Tuesday, cryptocurrency-linked stocks saw declines as Bitcoin fell below $90,000 for the first time since November. Companies like Robinhood, Coinbase Global, and Strategy faced significant drops in share prices. This decline reflects ongoing economic uncertainty as investor confidence wanes, particularly among risk assets.
Cryptocurrency-linked stocks experienced a significant decline on Tuesday, as Bitcoin prices fell below $90,000 for the first time since November. This downturn prompted investors to withdraw from risk assets, which included a noticeable drop in share prices. Major companies affected include Robinhood, Coinbase Global, and Marathon Digital Holdings, all reporting losses between 8% and 9%.
Shares of Riot Platforms Inc. dropped approximately 7%, while Strategy, formerly MicroStrategy, fell around 10%. Remarkably, this company recently expanded its Bitcoin holdings, acquiring nearly $2 billion in the cryptocurrency. Concurrently, Bitcoin was trading at approximately $87,000, considerably below its peak of around $109,000 reached last month.
The decline in both Bitcoin and related assets has coincided with heightened economic uncertainty. This shakeup has resulted in small-cap shares entering correction territory, while major stock indexes continue to show declines this month, primarily influenced by a notable downturn observed in the previous week. On Monday, the major U.S. indexes closed predominantly lower, reflecting investor caution amidst an unpredictable market environment.
Cryptocurrency-connected stocks saw a substantial decrease following Bitcoin’s drop below $90,000, leading to investor aversion towards riskier assets. Major firms linked to the cryptocurrency market, like Robinhood and Coinbase Global, reported significant share declines. Economic uncertainty continues to influence the market, contributing to the overall downturn in various asset classes, including small-cap stocks and major stock indexes.
Original Source: www.investopedia.com
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