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The ongoing correction in the Cryptocurrency market continues to cause major problems among investors, especially for leveraged derivatives traders. The latter lose $1.37 billion in the last 24 hours ending this Friday at 15:29 GMT. However, the bloodbath is not limited to this, but extends to crypto stocks on the stock market.
The shares of most companies linked directly or indirectly to Bitcoin are experiencing strong ebbs. Among the most striking are those of MicroStrategy, which show -16% in the last 5 days despite the notable recovery this Friday. According to data from Yahoo Finance, MSTR is trading at $344 per share at the time of writing.
It is important to remember that on Wednesday, before Powell’s statements, they approached $390 per unit. As you can see, the official’s words became a force of market manipulation for the crypto sector. The latter, considering that the Fed actually applied a new interest rate cut, which in theory should be a bullish factor.
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In any case, crypto sector stocks joined the general collapse of the spot market for these digital assets. For example, Coinbase shares are now changing hands for $278, which contrasts with the $309 they hit on Wednesday.
Crypto Mining stocks and Bitcoin ETFs
Other major stocks related to the cryptocurrency sector are also experiencing sharp pullbacks. For example, Bitcoin miners, another of the reference sectors on the stock market, also lost ground in recent days. In that sense, this Friday MARA, CORE and RIOT continue in the red.
MARA stock is trading for $19.96, which is -11.57% in 5 days. The rest of the mining companies have a similar performance story. So far this Friday, there are some exceptional cases such as Bitdeer, which exceeds +6%. However, the general rule is downward.
Meanwhile, shares of exchange-traded products, or Bitcoin spot ETFs, also decline noticeably. However, the benchmark of this sector, BlackRock’s IBIT, does not suffer a dramatic collapse as one might assume. In fact, its shares reflect -5.40% in 5 days and are priced at $54.82 at the time of writing, reflecting +0.16% in 24 hours.
Although Powell’s statements did not affect this sector on Wednesday, liquidations did occur on Thursday. Thus, in terms of flows, yesterday $671.9 million of these products came out and a chain of positive flows that began on November 27 and extended to 15 consecutive days was broken.
As you can see, the possibility of a political conflict between the Federal Reserve and the White House is already causing problems among crypto stocks.
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