Coinbase and Other Crypto Stocks Extend Losses After Bitcoin’s Sharp Slide


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Seemanta Dutta/Dreamstime.com

Coinbase
,

Marathon Digital

and other cryptocurrency-related stocks were extending losses Thursday after

Bitcoin
slumped and investors sold off the tech sector. Coinbase (ticker: COIN) was down 1.4% to $231 in premarket trading Thursday after dropping more than 7% during the previous session as Bitcoin slid following the release of the minutes from the Federal Reserve’s meeting in December.

Marathon Digital (MARA) fell 1.8% early Thursday after sinking more than 13% on Wednesday;

Riot Blockchain

(RIOT) was down 2.3% Thursday after declining 12% on Wednesday; and

MicroStrategy

(MSTR) fell 2% following the previous session’s decline of 7.6%. Bitcoin was at $42,879, down 8.3% over the past 24 hours, according to CoinDesk. The decline by the world’s largest cryptocurrency coincided with a sharp downturn in tech stocks after Fed officials indicated that inflation readings and tight labor conditions could warrant an interest-rate increase “sooner or at a faster pace than participants had earlier anticipated.” Bitcoin has fallen 7.7% since the start of the year.

Ethereum,
the second-largest digital currency, was at $3,359, down 12.2% over the past 24 hours, according to CoinDesk. Bitcoin’s selloff could be another sign the cryptocurrency is acting more like a tech stock than a store of value, such as gold. The tech-heavy Nasdaq sank 3.3% on Wednesday, its largest one-day percentage drop since February. Goldman Sachs has argued that Bitcoin could be worth $100,000 if investors accept that it really is digital gold. Write to Joe Woelfel at [email protected]



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