The continuous selling pressure in the cryptocurrency market has also impacted the crypto-related stocks in the United States. Today on July 5, 2024, in the pre-market crypto-based stocks showed a massive price drop. The major reason behind this pre-market price drop is the massive crash in the prices of Bitcoin (BTC) and other cryptocurrencies.
Crypto stocks plunge in pre-market, Here’s why
In the pre-market, the largest corporate Bitcoin holder MicroStrategy (MSTR) holds a massive 210,000 BTC and Bitcoin Miner Hut 8 (HUT) are two of the top crypto stocks looser which are currently down by 8.5% and 9.5%, respectively.
However, the other crypto stocks including Marathon Digital (MARA), CleanSpark (CLSK), and Riot Platform (RIOT) fall in the range of 6% to 7.5% in the pre-market. Additionally, the United States-based cryptocurrency exchange Coinbase (COIN) dropped by 6.5% in the pre-market.
The reason behind this massive sell-pressure and notable price drop across the cryptocurrency market is caused by the bearish market, the recent sale of BTC by Mt. Gox, and the continuous BTC dump by the German government. These factors not only affect the cryptocurrency market but also impact crypto-related stocks and overall market sentiment.
Cryptocurrency market overview
Along with these crypto-stocks, as of writing, the overall cryptocurrency market is down by 4.6%. However, Bitcoin is trading near the $55,370 level, and in the last 24 hours, it experienced over 4% price drop. Whereas, in the last 24 hours the trading volume has also surged by 40%, showing strong investors and traders’ participation in BTC amid this ongoing selling pressure.
If we look at the performance of BTC over a longer period, in the last 7 days It lost more than 10% of its value. Whereas, in the last 30 days it lost more than 22% of price drop.
This massive price drop in BTC created a huge impact on other tokens including Ethereum(ETH), Solana (SOL), BNB (BNB), and XRP (XRP). According to coinmarketcap, ETH, SOL, BNB, and XRP have experienced over 7%, 3%, 8%, and 7.7% of downside momentum in the last 24 hours.
On the other hand, the government of Germany is continuously creating selling pressure in the market, as today they once again transferred a massive 547.44 BTC worth $30.09 million. However, the government still hasn’t responded to Justin Sun’s public offer.