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In summary
- Cryptocurrency stocks saw a broad-based drop early Monday after Bitcoin failed to maintain its early weekend momentum.
- Coinbase (COIN) fell 4% to $156.63, MicroStrategy (MSTR) fell 5% to around $133, and the Valkyrie Bitcoin ETF (WGMI) fell 5% to nearly $16.
- Bitcoin fell below the $58,000 mark, losing almost 4% over the past 24 hours.
Cryptocurrency stocks saw a broad-based drop at the start of Monday after Bitcoin failed to maintain its initial weekend momentum. However, some are starting to recover as the day progresses.
At 9:45 a.m. ET, Coinbase (COIN) was down 4% to $156.63. MicroStrategy (MSTR), the world’s largest corporate holder of Bitcoin, was down 5% to roughly $133, while the Valkyrie Bitcoin ETF (WGMI) was down the same amount to a price of nearly $16.
In comparison, the S&P 500 was flat, and the Nasdaq 100 was down 0.5% at the open on Monday. Meanwhile, after surging above $60,500 on Saturday, Bitcoin has fallen below the $58,000 mark at the time of writing. However, over the past 24 hours it is down nearly 4%.
Elsewhere, Coinbase is up to nearly $162, losing less than 1% on the day, while WGMI is up above $17, putting its daily loss at nearly 2%. However, MicroStrategy has only recovered slightly as of this writing, down nearly 4% on the day to a current price of $136.
Coinbase has underperformed Bitcoin so far this year, up just 3.5% as of Monday versus Bitcoin’s 31% gain. Similarly, and despite its exceptional performance at the start of the year, diminishing hype around CleanSpark (CLSK) in recent months has pushed WGMI into negative territory compared to January 1.
In contrast, MSTR is up 91%, outperforming Bitcoin’s gains during the crypto market explosion in early March.
MetaPlanet, a much smaller company based in Japan, is up a staggering 544% after adopting its own MicroStrategy-inspired Bitcoin strategy in April.
Both companies have ramped up their BTC-focused strategies in recent weeks, with MetaPlanet announcing another $2 million purchase of BTC last week, and MicroStrategy purchasing another $1.1 billion worth of BTC shortly after.
In a report on Sunday, Canaccord Genuity set its price target for MSTR at $173, a 30% increase from today’s price. “Our price target is derived by assuming a 20% one-year appreciation for BTC from the current price, a 15% increase in the value of the software business, and our assumption that the current sum-of-the-parts premium remains intact.”
DeFi Technologies, a Canadian fintech company with multiple cryptocurrencies on its balance sheet, is also up 283% this year, and defied Monday’s bearish trend with a 1.5% gain.
On Wednesday, the Federal Reserve is expected to announce its first interest rate cut in years, which could have complex implications for the cryptocurrency and stock markets.
At the time of writing, futures markets are split on whether the cut will be 25 or 50 basis points, with growing support for the latter.
Edited by Andrew Hayward
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