Crypto stocks fall after Bitcoin's 15% sell-off over the weekend

Time:2022-01-02 Source: 968 views Trending Copy share

Crypto-related stocks such as Marathon Digital (NASDAQ:MARA), MicroStrategy (NASDAQ:MSTR) and Riot Blockchain (NASDAQ:RIOT) start the week off deep in the red following Bitcoin's (BTC-USD) plunge this past weekend.
Prior to Monday's bloodbath, crypto stocks still traded in net negative territory going back to Nov. 26, and in the past month, as seen in the charts below.


Meanwhile, Bitcoin (BTC-USD) edges higher by 1.7% in the past 24 hours, though well below its all-time high towards the end of October at $69.3K per token, now changing hands at $48.7K.
Still, the global crypto market cap also falls 0.5% to $2.24T so far on Monday, down from a bit over $2.6T in the prior week.
The crypto slump comes at a time when U.S. growth stocks and other risk assets take a bearish turn following a more hawkish Fed and some disappointing economic data.
In addition, "the crypto blowup over the weekend appears to be tied to the latest chatter about the FED.... Not the taper, but the move to raise rates well ahead of schedule," Kace Capital Advisors Managing Partner Kenny Polcari writes in a tweet. "Like 'tech' - crypto's will suffer initially as well."
Looking at proxies of Bitcoin's (BTC-USD) price action, Grayscale Bitcoin Trust (OTC:GBTC -9.0%), MicroStrategy (MSTR -6.8%), Osprey Bitcoin Trust (OTCPK:OBTC -8.9%) and ProShares Bitcoin Strategy ETF (BITO -8.6%) collapse out of the gate.
Some other crypto-related stocks that are screaming lower include: Argo Blockchain (ARBK -10.2%), Ebang International Holdings (EBON -7.7%), Cipher Mining (CIFR -8.1%), Power and Digital Infrastructure (XPDI -8.5%) and Voyager Digital (OTCQX:VYGVF -5.9%).
Previously, (Nov. 29) See why D.A. Davidson analyst Christopher Brendler thinks the crypto mining stocks selloff is overdone.

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