Key Points
- US-based crypto mining stocks are experiencing a downturn, mirroring Bitcoin’s recent decrease in value.
- The decline follows a transfer of $2.6 billion worth of Bitcoin by Mt. Gox and a 10% decrease in Bitcoin’s value over the past week.
The recent weakness of Bitcoin is being reflected in several US-based crypto mining stocks, with many trading down nearly 10% in premarket trading.
Marathon Digital Holdings is currently down 6.5%, while Hut 8 has seen a decrease of 8.1%. MicroStrategy, a software company which holds over 210,000 BTC, is experiencing a 6.4% decrease.
Trigger for the Drop
The recent downturn in stock prices follows a significant move by Mt. Gox. The company transferred $2.6 billion worth of Bitcoin to a new wallet in preparation for repaying its creditors.
This comes on the heels of a 10% decrease in Bitcoin’s value over the past week. The German government’s decision to sell some of the seized BTC also influenced the market.
In addition to mining stocks, other crypto stocks have also been affected. Coinbase, CleanSpark, and Riot Platforms all experienced a decrease between 6% and 8% in premarket trading.
Bitcoin’s Decline
Bitcoin’s value has been on a downward trend, hovering around $55,400 at the start of the day on Friday. This represents a fall of over 10% in five days.
On Thursday, Bitcoin’s value dropped below the $55,000 mark, reaching levels not seen since February. It’s clear that there is significant selling pressure as some Bitcoin traders are on edge due to large holders, like Mt. Gox, selling their BTC.
