Due to unfavorable macroeconomic factors and bearish market sentiment, cryptocurrency stocks and digital assets are currently in a downward trend.
Bitcoin’s price has dropped to levels unseen for months, currently trading at $64,100, marking a 2.8% decrease over the past week. This decline has negatively impacted altcoins and crypto company stocks.
Crypto stocks, influenced by developments in Bitcoin, altcoins, or blockchain, are experiencing significant declines. Major players like Coinbase and Bitcoin mining companies are trading in the red. Here is a summary of the performance of leading crypto stocks this week:
Coinbase (COIN):
The digital asset exchange registered a 3.9% decline in the last 24 hours and over 8% weekly losses. While monthly data is relatively stable, the long-term statistics still reflect the highs recorded earlier this year. Since its debut in 2021, Coinbase’s shares have mirrored the market cycles of Bitcoin, with significant activity during bull markets and declines during bear markets.
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According to this key indicator, the altcoin season may start earlier.
Bitcoin Mining Companies
Marathon Digital (MARA):
Currently valued at $19.21 per share, Marathon Digital saw a 7% decrease yesterday and a 4% decline for the week. The outflow of Bitcoin has affected mining companies due to reduced reserves.
Hut 8:
Based in Canada, Hut 8 declined by 5.28% on Friday but saw a 10% increase on a weekly basis.
Riot Platforms:
Dropped by 8% yesterday, with a 12% decline over the past seven days.
Outlook for Crypto Stocks
The short-term decline in crypto stocks may reverse if broader market conditions improve. Factors such as potential interest rate cuts by the Federal Reserve and the upcoming US presidential elections could boost Bitcoin and other crypto assets, leading to a recovery in crypto stocks.
