Bitcoin Mining Stocks Plunge 20%-30% Amid Nvidia’s Market Drop
Bitcoin (BTC) bounced slightly from a low of $98,000 to around $101,500 but remains down 3% in the last 24 hours. The CoinDesk 20 Index fell 5.6%, impacted by losses in AI-related tokens like render (RNDR) and filecoin (FIL), while Solana dropped over 10%.
Nearly $1 billion in leveraged derivatives positions were liquidated across crypto assets. The Nasdaq also declined 3%, with Nvidia dropping 17%, losing $465 billion in market value. Bitcoin's correlation with tech stocks was highlighted by Standard Chartered Bank.
Crypto stocks faced significant losses: Coinbase (COIN) fell 6.7%, Galaxy (GXY) dropped 15.8%, and MicroStrategy declined 1.5%. Bitcoin mining stocks suffered more, with Riot Platforms (RIOT) and MARA Holdings (MARA) down 8.7% and 16%, respectively. Miners focusing on high-performance computing saw declines of 25%-30%.
Market analysts suggested that profit-taking corrections occurred after a period of strong performance in crypto and AI stocks. Upcoming Federal Reserve meetings and earnings reports from major tech companies will be closely monitored. Some investors see this selloff as an entry opportunity for altcoins, particularly higher-beta tokens like solana (SOL).