Bitcoin’s recent plunge has had a ripple effect, dragging down major cryptocurrency stocks including Tesla and Coinbase. The cryptocurrency’s price plummeted 7%, falling from $73,000 to around $63,000 in just one week. This downward trend was further exacerbated by a record daily outflow of $642.5 million from the Grayscale Spot Bitcoin ETF. GBTCOn Monday.
MicroStrategy, a software company known for its Bitcoin maximalist stance, also took a hit, losing nearly 7.5% and trading at $1,384 at the time of writing. The company recently completed another convertible note offering to increase its Bitcoin holdings, selling $604 million of notes to purchase 9,000 Bitcoin. The move is part of MicroStrategy’s aggressive Bitcoin purchasing strategy, with the company currently owning 214,246 Bitcoin, equivalent to 1% of the total Bitcoin supply.
Tesla, another prominent player in the cryptocurrency space, has seen its stock plummet 60% from its all-time high and is currently trading at $171, down 1.2% on the day. The stock’s volatility was sparked by an article published by The Wall Street Journal followed by an interview in which Tesla CEO Elon Musk was asked about alleged drug use. Despite this decline, Tesla still holds over 10,500 Bitcoin worth $336 million.
Coinbase, the largest publicly traded cryptocurrency exchange, also faced a 3% decline, trading at $230 at the time of writing. The price drop is directly related to Bitcoin’s sharp decline.
Other stocks in the cryptocurrency industry saw similar declines. Square, led by Jack Dorsey, fell about 2% and hovered around $80. Shares of the cryptocurrency-friendly company Robinhood fell 5% to $17. Cryptocurrency mining company Riot Platforms suffered a loss of more than 2%, falling to $11.
Despite recent recessionExperts are optimistic about the future of Bitcoin, believing that it will soon recover and reach new peaks.
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