Cryptocurrency Stocks Witness Significant Fall on Nasdaq's 2024 Debut
Summary:
On the first day of Nasdaq trading in 2024, shares of major Bitcoin and other cryptocurrency-related companies fell significantly, some by as much as 17%. This occurred just before an anticipated spot Bitcoin ETF announcement. Despite this, experts referred to it as a "healthy pull back", citing profit-taking as a primary factor. Additionally, investor worries about the forthcoming Bitcoin halving event in April also contributed to the sharp drop in Bitcoin mining company shares. Nevertheless, in spite of these turn of events, it was noted that several cryptocurrency-related stocks still managed to outperform Bitcoin's impressive rise in 2023.
On the first day of Nasdaq trading in 2024, Bitcoin and other cryptocurrency-related company shares experienced a significant hit, with some stocks falling to a shocking 17%. This occurred just days before the expected announcement of a spot Bitcoin exchange traded fund (ETF). A Bitcoin analyst mentioned to Cointelegraph that after a favourable December, this was a "healthy pull back". Google Finance indicates that Bitcoin mining entities suffered the biggest hits during the day, with Marathon Digital Holdings (MARA) shares seeing a 16.6% decrease to $23.5, and Riot Platforms (RIOT) falling 12.1% to $15.5. Digital mining firms Hut 8 Corp (HUT) and Hive Digital Technologies (HIVE) likewise experienced declines, falling 17.3% and 15.1% respectively. Business intelligence corporation Microstrategy (MSTR), often seen as a Bitcoin proxy, dropped 5.4% to $631.6. However, Bitcoin's recent upswing to $45,000 at the start of the year softened the blow, since the company currently commands 189,150 BTC on its balance. Creating a slump in shares, crypto exchange Coinbase (COIN) also fell 6.6% to $173.9, and plummeted an additional 1.25% to $171.7 during after-hours trading on January 1. Mitchell Askew of Blockware Solutions, a Bitcoin mining outfit, referred to the market dip as a "healthy pull back". According to him, some end of year profit-making also played a role in triggering this pull back. However, he pointed out that despite bitcoin's steady rate at 43k throughout December, Bitcoin mining enterprises had pushed beyond their prior 2023 highs. In connection with the severe drop in Bitcoin mining company shares, Markus Thielen from Matrixport, a cryptocurrency financial services company, conveyed a similar sentiment. He had previously warned investors about their shares reaching their fair value against Bitcoin or even exceeding it in some cases. Investor concerns about the forthcoming Bitcoin halving event anticipated in April and its potential effect on balance sheets could be another reason behind the share price decrease. However, Askew dismissed these concerns as "unsubstantiated", pointing out that public miners, due to their efficient ASICs and low power costs, can navigate such events without problems. Despite Bitcoin's impressive rise of 152% to $42,325 in 2023, at least 15 cryptocurrency-related stocks outperformed it. One such star performer was MARA, which saw a nearly 600% rise in 2023. According to nsquaredcrypto, most Bitcoin-related stocks performed better than Bitcoin itself in 2023.
Published At
1/2/2024 4:10:30 AM
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