Coinbase, MicroStrategy & Bitcoin Miners Stocks Extend Losses Ahead US Job Data

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As an experienced market analyst, I’ve witnessed my fair share of volatile market conditions, particularly within the crypto sector. Today’s premarket session was no exception as Bitcoin’s downward spiral weighed heavily on the stocks of prominent crypto companies like Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital.

On a turbulent Friday, July 5th, the stocks of well-known cryptocurrency companies saw considerable drops during the premarket session. This came as Bitcoin‘s (BTC) downturn deepened for the fourth day in a row. In the early hours of trading, Bitcoin’s price fell by approximately 8%, sinking below $54,000 – its lowest point since February. Although it later rebounded from this decline, Bitcoin’s volatility caused alarm, leading to extensive selling across the crypto market.

Coinbase, MicroStrategy & Other Crypto Stocks Plummet

MicroStrategy Inc. (MSTR), known for possessing a significant amount of Bitcoin in its corporate holdings, experienced a setback as its shares declined by approximately 6% during premarket trading. Today, the MSTR stock dropped 6.53%, reaching a price of $85.09.

Bitmining companies such as Riot Platforms (RIOT) and Marathon Digital (MARA) experienced losses of 5.64% and 6.48%, respectively, in recent times. Additionally, Bitcoin’s price remains close to the break-even point for miners like Marathon Digital and Iris Energy. Moreover, Marathon Digital saw a decrease in mining output from 616 BTC in May to 590 BTC in June. These developments have sparked worries within the miner community and negatively impacted their respective stocks.

This morning, the Coinbase (COIN) share price dropped by 5.71 percent, reaching a value of $212.10 during the pre-market trading period. Previously, significant selling actions from Cathie Wood’s Ark Invest further influenced the stock in a negative manner.

As an analyst, I’ve noticed an intriguing correlation between recent Bitcoin price declines and developments surrounding Mt. Gox, the defunct cryptocurrency exchange. Notably, there have been reports that 47,228 BTC, valued around $2.6 billion at current prices, were moved from cold storage to a new wallet within the exchange. This transfer alone is significant, but it’s further complicated by Mt. Gox’s announcement of BTC and Bitcoin Cash (BCH) payments to certain creditors. Additionally, liquidations tied to long positions on Bitcoin exceeded $590 million, intensifying downward market pressure.

In the wider cryptocurrency arena, significant declines were seen. Ethereum dropped almost 8%, while Cardano fell by approximately 12% and XRP experienced a decrease of around 10%. Solana also suffered a loss of roughly 5% in value, mirroring the risk-averse attitude of investors.

US Jobs Data & Company Earnings

As a researcher looking into the economic landscape, I’m keeping a close eye on today’s upcoming US jobs report for June. According to expert predictions, we can anticipate the addition of around 195,000 new jobs in this month, which is a decrease compared to May’s impressive number of 272,000 newly created positions. The unemployment rate is projected to hold steady at 4.0%, while forecasters expect hourly wages to see an uptick of 0.3% for June.

Economic indicators have the power to shape investor attitudes and may be especially significant when it comes to worries about inflation and the Federal Reserve’s monetary policy. Should the Fed maintain its hawkish position following the release of these data, the crypto market and associated equities could experience additional declines.

Additionally, investors will closely monitor the upcoming earnings reports of Coinbase, MicroStrategy, and Marathon Digital in August. The Q2 earnings call for Coinbase is scheduled for August 1, followed by MicroStrategy’s report on August 6 and Marathon’s release on August 13. Analysts on Wall Street anticipate these companies will surpass expectations, potentially leading to a stock price recovery.

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2024-07-05 14:22