The ongoing correction in the cryptocurrency market continues to cause major problems for investors, especially for leveraged derivatives traders. The latter lost $1.37 billion in the last 24 hours ending this Friday at 15:29 GMT. However, the bloodbath is not limited to this, but extends to the crypto stocks on the exchange.
The shares of most companies directly or indirectly linked to Bitcoin are experiencing strong declines. Among the most striking are those of MicroStrategy, which show a -16% in the last 5 days despite the notable recovery this Friday. According to data from Yahoo Finance, MSTR is trading at a cost of $344 dollars per share at the time of writing.
It is important to remember that on Wednesday, before Powell's remarks, they were close to $390 per unit. As you can see, the official's words became a force of market manipulation for the crypto sector. The latter, considering that the Fed actually applied a new interest rate cut, which in theory should be a bullish factor.
Either way, crypto stocks have joined the broader rout in the spot market for these digital assets. For example, Coinbase shares are now trading at $278, down from $309 on Wednesday.
Crypto mining stocks and Bitcoin ETFs
Other major stocks related to the cryptocurrency sector are also experiencing sharp declines. For example, Bitcoin miners, another of the benchmark sectors on the stock market, have also lost ground in recent days. In this sense, MARA, CORE and RIOT remain in the red this Friday.
MARA shares are trading at $19.96, which represents a -11.57% in 5 days. The rest of the mining stocks are showing a similar performance story. So far on Friday, there are some exceptional cases such as Bitdeer, which exceeds +6%. However, the general rule is downwards.
Meanwhile, shares of exchange-traded products, or spot Bitcoin ETFs, are also noticeably down. However, the benchmark for this sector, BlackRock's IBIT, is not experiencing a dramatic crash as one might expect. In fact, its shares are down -5.40% in 5 days and are priced at $54.82 at the time of writing, reflecting a +0.16% in 24 hours.
Although Powell's statements did not affect this sector on Wednesday, there were settlements on Thursday. Thus, in terms of flows, $671.9 million of these products left yesterday, breaking a chain of positive flows that began on November 27 and extended to 15 consecutive days.
As you can see, the possibility of a political conflict between the Federal Reserve and the White House is already causing problems for crypto stocks.