PreMarket Downtrend Observed in Bitcoin Mining Equities
Several U.S.-based cryptocurrency mining stocks are experiencing a significant decline in premarket trading, mirroring the weakness of Bitcoin. Marathon Digital Holdings (MARA) has dropped by 6.5%, while Hut 8 (HUT) has fallen by 8.1% at the time of writing. MicroStrategy (MSTR), the software company owned by Michael Saylor that holds more than 210,000 BTC, is also down by 6.4%.
The recent decrease in stock prices can be attributed to Mt. Gox’s transfer of $2.6 billion worth of Bitcoin to a new wallet in preparation for repaying its creditors. This decline follows a 10% drop in Bitcoin’s value over the past week and the German government’s decision to sell some of the seized BTC.
Other cryptocurrency stocks like Coinbase (COIN), CleanSpark (CLSK), and Riot Platforms (RIOT) have also experienced a decline of 6% to 8% in premarket trading.
Bitcoin, in particular, is facing a significant slump, with its price hovering around $55,400 at the start of Friday. This marks a decrease of over 10% in just five days. On Thursday, the value of Bitcoin fell below the $55,000 mark, reaching levels not seen since February.
The market clearly indicates a wave of selling pressure, as some Bitcoin traders are concerned about the large-scale selling activities by major holders such as Mt. Gox.
