Due to unfavorable macroeconomic factors and bearish market sentiment, cryptocurrency stocks and digital assets are currently in a downward trend.
The price of Bitcoin has dropped to levels unseen for months, currently trading at $64,100, marking a decline of 2.8% in the last week. This decline has negatively affected altcoins and stocks of crypto companies.
Crypto stocks, which are influenced by the developments of Bitcoin, altcoins, or blockchain, are experiencing significant declines. Major players like Coinbase and Bitcoin mining companies are trading in the red. Here is a summary of the performance of leading crypto stocks this week:
Coinbase (COIN):
The digital asset exchange registered a decline of 3.9% in the last 24 hours and over 8% weekly losses. While monthly data remains relatively stable, long-term statistics still reflect the highs registered earlier this year.
Since its debut in 2021, Coinbase stock has mirrored the market cycles of Bitcoin, with significant activity during bull markets and downturns during bear markets.
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Based on this fundamental indicator, the altcoin season is expected to start early.
Bitcoin Mining Companies:
Marathon Digital (MARA):
Currently valued at $19.21 per share, Marathon Digital recorded a 7% decline yesterday and a 4% decline for the week. The outflow of Bitcoin has impacted mining companies due to reduced reserves.
Hut 8:
Canada-based Hut 8 dropped by 5.28% on Friday but saw a 10% growth on a weekly basis.
Riot Platforms:
It declined by 8% yesterday, with a 12% decline over the past seven days.
Prospects for Crypto Stocks:
The short-term decline in crypto stocks may reverse if broader market conditions improve. Factors such as the potential reduction of interest rates by the Federal Reserve and the upcoming presidential elections in the United States could boost Bitcoin and other crypto assets, leading to a recovery of crypto stocks.
