Cryptocurrency-related stocks experienced a sharp decline on Monday as escalating geopolitical tensions and concerns over the global economy triggered a significant drop in Bitcoin (BTC) and ether (ETH) prices.
Coinbase (COIN), a major cryptocurrency exchange, saw its stock plunge by more than 9% in pre-market trading in the U.S. Software company MicroStrategy, known for its substantial bitcoin holdings, experienced a 13% drop. CoinShares, a crypto asset manager based in Sweden, fell by 7.5%.
The downturn in cryptocurrency prices followed disappointing U.S. economic data. The Labor Department reported job figures that fell short of expectations and a higher-than-anticipated unemployment rate. Additionally, geopolitical instability in the Middle East exacerbated market concerns. Tensions escalated as Iran threatened retaliation against Israel following the assassination of Ismail Haniyeh, the political leader of Hamas, in Tehran last week. Haniyeh was designated a terrorist by the U.S. in 2018.
On Monday, bitcoin, the largest cryptocurrency by market capitalization, plummeted by up to 15%, falling below $50,000 for the first time since February before partially recovering to around $52,000. Ether, the second-largest cryptocurrency, fell for the seventh consecutive day, marking its steepest drop since May 2021.
Miners faced significant losses alongside bitcoin. Marathon Digital (MARA) and Iren (IREN) each lost approximately 14%, while Hut 8 (HUT) fell 12% and Riot Platforms (RIOT) dropped 11%.
