On July 5, 2024, key U.S. crypto stocks faced a significant downturn in pre-market trading as Bitcoin’s value plummeted, affecting companies like MicroStrategy, Hut 8, Marathon Digital, CleanSpark, Riot Platforms, and Coinbase.
On July 5, 2024, key U.S. crypto stocks experienced a sharp decline in pre-market trading, mirroring the fall in Bitcoin’s (BTC) value. Bitcoin was trading around $54,400 in European markets, reflecting a 24-hour drop of 5.8% after earlier hitting $53,600, the lowest since late February.
The downturn follows the transfer of approximately $2.6 billion worth of BTC by the now-defunct crypto exchange Mt. Gox to a new wallet before starting creditor repayments. Market participants appear concerned about the potential for massive sell-offs by the recipients, leading to significant selling pressure.
MicroStrategy, led by Michael Saylor, and bitcoin miner Hut 8 were hit hardest, with declines of 8.5% and 9.5%, respectively. Other mining companies, such as Marathon Digital, CleanSpark, and Riot Platforms, saw their shares fall between 6% and 7.5%. Cryptocurrency exchange Coinbase also experienced a 6.5% drop.
