Breaking News: Crypto Stocks Plummet as Bitcoin Hits Lowest Point Since February
In today's premarket, shares in crypto-related companies took a nosedive as Bitcoin continued its downward trend for the fourth consecutive session. The leading cryptocurrency dropped 6.5% to $54,450.0, reaching its lowest point since February before briefly recovering.
The drop in Bitcoin had a ripple effect on cryptocurrency stocks, with MicroStrategy Incorporated (NASDAQ:), Riot Platforms (NASDAQ:), Marathon Digital (NASDAQ:), CleanSpark (NASDAQ:), Cipher Mining (NASDAQ:), and Coinbase (NASDAQ:) all experiencing significant declines.
The sudden decline in Bitcoin can be attributed to Mt. Gox, the defunct crypto exchange, transferring a significant amount of BTC to a new wallet in preparation for creditor repayments. This move led to over $580 million in liquidations tied to long positions, marking one of the largest such events this year.
Broader crypto prices also took a hit, with Ethereum plunging nearly 10%, Litecoin dipping as much as 16%, and Dogecoin tumbling 11.5%.
In conclusion, investors in the crypto market should brace themselves for increased volatility as Bitcoin and other cryptocurrencies continue to face pressure. It is important to stay informed and monitor market developments closely to make informed decisions about their investments.