Friday, July 19, 2024
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Bitcoin mining stocks slumping in pre-market trading

Many U.S.-based crypto mining stocks are reflecting Bitcoin’s weakness and are trading down close to 10% in premarket trading. 

Marathon Digital Holdings (MARA) is down 6.5%, while Hut 8 (HUT) is down 8.1% at the time of writing. Michael Saylor’s software company MicroStrategy (MSTR), which holds over 210,000 BTC, is down 6.4% at the time of writing.  

The recent drop in stock prices occurred after Mt. Gox transferred $2.6 billion worth of Bitcoin (BTC) to a new wallet in preparation for repaying creditors. This drop follows a 10% decrease in Bitcoin’s value over the past week and also follows the German government’s decision to sell some of the BTC it had seized.

Other crypto stocks like crypto exchange Coinbase (COIN), CleanSpark (CLSK), and Riot Platforms (RIOT) all fell between 6%- and 8% in premarket trading. 

Bitcoin slumping

Bitcoin was hovering around $55,400 as of the start of the day Friday, a fall of over 10% in five days. On Thursday, the value of Bitcoin dropped below the $55,000 mark, reaching levels not witnessed since February.

It’s evident there is mass selling pressure as some Bitcoin traders are on edge because of large holders, like Mt. Gox, selling their BTC. 

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