Crypto-Related Stocks Also See Price Drops as Market Slumps

Share Article
In Brief
  • Stocks closely associated with cryptocurrencies have also taken a hit as the market overall has downturned.

  • Marathon Digital, Riot Blockchain shares have fallen 30% since the beginning of the month.

  • Concerns over the Omicron variant of the coronavirus and inflation news from the Federal Reserve spilled over into the cryptocurrency markets.

  • promo

    Unlock Next-Level Trading Experience — Earn up to 8.88% APY Trade now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Stocks closely associated with cryptocurrencies have also taken a hit as the market overall has downturned.

Sponsored





Sponsored

Among the hardest hit is Marathon Digital Holdings, which has fallen nearly 30% since December 1 to just over $40. Over that same period of time, Riot Blockchain similarly fell 30%, from just over $40 itself to just below $28. Meanwhile, MicroStrategy has fallen 20% since the beginning of the month. Other stocks affected by the recent selloff in digital assets include Bakkt Holdings and Coinbase Global, which fell 9% and 4% respectively.

“Crypto coins and tokens have been propelled higher in this era of ultra cheap money and as speculation swirls about just when central banks will start further tightening mass bond buying programs and start raising interest rates, they are likely to continue to be highly volatile,” said Hargreaves Lansdown analyst Susannah Streeter.

Sponsored



Sponsored

Crypto markets curtailed

Concerns over the Omicron variant of the coronavirus and inflation news from the Federal Reserve spilled over into the cryptocurrency markets. Uncertainty over these issues has caused investors in traditional markets to withdraw from riskier positions, which carried over to more volatile digital assets. At one point over the weekend, Bitcoin plummeted over 20%, falling below the $50,000 threshold to $42,000, but has since recovered to roughly $49,000.

This broad move away from riskier assets was largely triggered by growing concerns over the new Omicron variant of coronavirus pandemic. Fears over the spread of the new variant have renewed travel restrictions worldwide, as scientists try to determine whether current vaccines will be effective against it.

Meanwhile, Federal Reserve Chairman Jerome Powell said the central bank could begin tapering much faster than previously expected last week. He even suggested potentially raising interest rates in the first half of next year, which has shown to diminish the appeal of speculative assets like Bitcoin.

What do you think about this subject? Write to us and tell us!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

Follow Author

Unlock Next-Level Trading Experience — Earn up to 8.88% APY      

Join

Unlock next-level trading on Bybit with your favorite metaverse      

Join

Bybit New Token Listing: Win In-Game NFTs and SIDUS Tokens.      

Win Now!