Bitcoin miners and other cryptocurrency-focused stocks experienced significant losses Thursday, reflecting a broader decline in crypto markets and other risk-sensitive assets. Bitcoin’s price dropped below $99,000 for the first time since early May, intensifying pressure on related equities.
Shares of mining companies Bitdeer Technologies Group and Bitfarms plunged over 20% and 17%, respectively, while Cipher Mining fell 13%. MARA Holdings, which holds the largest Bitcoin reserve among miners, declined more than 10%.
Cryptocurrency Prices Drop to Multi-Month Lows
Bitcoin, the largest cryptocurrency by market capitalization, slid approximately 3% in the past 24 hours to $99,371, down nearly 22% from its record high set just over a month ago. Ethereum and Solana, the second- and sixth-largest digital assets by market cap, fell about 7% each, reaching four- and five-month lows.
Crypto Exchanges and Related Stocks Also Weaken
Galaxy Digital’s shares decreased more than 12%, while trading platforms Robinhood Markets and Coinbase saw declines of roughly 9% and 7%, respectively. Treasury-related assets were also impacted, with BitMine Immersion, the largest Ethereum treasury, dropping nearly 10%, and a Bitcoin-focused strategy falling over 6%.
Major Stock Indexes Reflect Risk-Off Sentiment
Major U.S. indexes closed lower as investors moved away from technology stocks, with the Nasdaq down 2.5% and the S&P 500 off 1.75%. These declines occurred amid ongoing concerns about inflation and economic growth, despite the recent end of the longest U.S. government shutdown in history.
Economic Data Delays and Inflation Concerns Persist
The Bureau of Labor Statistics did not release the Consumer Price Index (CPI) for October on Thursday due to data collection delays caused by the government shutdown. The White House confirmed the delay, while a Wall Street Journal consensus forecast expected a 3% annual increase in the CPI for October, well above the Federal Reserve’s 2% target.
The Federal Reserve remains cautious about lowering interest rates as inflation continues to show persistence. However, mixed employment data complicate monetary policy decisions. Recent reports indicate that U.S. employers cut more than 11,000 jobs weekly through late October, and nonfarm payrolls declined by 50,000 in the same month, according to Goldman Sachs.
Market Sentiment on Bitcoin’s Future
Market expectations remain mixed. In a Myriad prediction market, 55% of respondents anticipate Bitcoin reaching $115,000 rather than dropping to $85,000, marking a roughly 6% decrease in bullish sentiment over the past day.
