Bitcoin’s recent plunge has had a ripple effect, dragging down major crypto-related stocks, including Tesla and Coinbase. The cryptocurrency saw a sharp 7% decline in its price, tumbling from $73,000 to around $63,000 in just under a week. This downward trend was exacerbated by a record daily outflow of $642.5 million from Grayscale’s spot Bitcoin ETF, GBTC, on Monday.
MicroStrategy, a software company known for its Bitcoin maximalist stance, also took a hit, experiencing a nearly 7.5% loss and trading at $1,384 at the time of writing. The company recently completed another convertible note offering to boost its Bitcoin holdings, selling $604 million in notes to purchase 9,000 bitcoin. This move is part of MicroStrategy’s aggressive Bitcoin buying strategy, with the company now owning 214,246 bitcoin, which represents 1% of the total Bitcoin supply.
Tesla, another prominent player in the crypto space, saw its stock price plummet by 60% from its all-time high, currently trading at $171 with a 1.2% decrease in a day. The stock’s volatility was fueled by an interview in which Tesla CEO Elon Musk was questioned about his alleged drug use, following a story published by The Wall Street Journal. Despite the decline, Tesla holds over 10,500 bitcoin, valued at $336 million.
Coinbase, the largest publicly traded crypto exchange, also faced a 3% decline, trading at $230 at the time of writing. The drop in its price is directly linked to Bitcoin’s sharp decline.
Other stocks in the crypto space experienced similar declines. Square, led by Jack Dorsey, saw a nearly 2% drop, hovering around $80. Robinhood, a crypto-friendly company, witnessed a 5% decline in its shares, which fell to $17. Riot Platforms, a crypto mining company, suffered a more than 2% loss, dropping to $11.
Despite the recent downturn, experts remain optimistic about Bitcoin’s future, believing that it will soon recover and reach new heights.
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