Bitcoin Falls to $107,000 as Altcoins and Miners Experience Declines
On Wednesday morning, U.S. hours, Bitcoin fell nearly 2% to just above $107,000, continuing its pullback from recent highs.
Altcoins experienced greater losses, with declines of 3%-5% for XRP, Solana, and Dogecoin.
Crypto-related stocks were heavily impacted, particularly bitcoin miners like MARA Holdings, Riot Platforms, and Hut 8, all down nearly 10%.
Bitcoin treasury companies also faced significant losses, including GameStop, which dropped 11% after announcing the acquisition of over 4,710 bitcoins (approximately $500 million), a figure viewed as modest compared to its previous $1.3 billion fundraising effort for bitcoin purchases.
Market Insights
- Bitcoin rallied about 50% from early April lows to reach a record high of $112,000 last week.
- Some market participants see signs of froth reminiscent of 2021.
- Research from NYDIG indicates bitcoin has risen about 7X from the November 2022 low of around $15,000.
- This is significantly lower than past peak-to-trough increases: 452X in 2013, 112X in 2017, and 20X in 2021.
- The Market Value to Realized Value (MVRV) ratio is currently at 2.4X, well below the 4.0X peak in 2021.
- NYDIG concludes that these metrics suggest potential for further upside in bitcoin prices.