Bitcoin Miners, Other Crypto-Related Stocks Are Tumbling Thursday: What's Going On?
Portfolio Pulse from Adam Eckert
Bitcoin mining stocks and other crypto-related companies are experiencing a decline following the SEC's approval of several spot Bitcoin ETFs. The SEC's approval, while a milestone, was not an endorsement of Bitcoin, as clarified by SEC chair Gary Gensler. This has likely contributed to the drop in crypto stocks as the ETFs provide a new investment avenue for Bitcoin exposure, potentially reducing demand for stocks like Marathon Digital Holdings, Riot Platforms, and CleanSpark. Additionally, the ETFs could pose a threat to crypto exchanges such as Coinbase Global and Robinhood Markets, which offer direct crypto asset investment services.
January 11, 2024 | 8:53 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
CleanSpark Inc. saw its stock price decrease by about 6.3%, potentially due to the SEC's approval of Bitcoin ETFs providing a new investment option for Bitcoin exposure.
The drop in CLSK's stock price is likely a reaction to the SEC's approval of Bitcoin ETFs, which could divert some investment away from Bitcoin mining stocks like CleanSpark.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Coinbase Global Inc. shares fell by 6.68%, likely impacted by the SEC's approval of Bitcoin ETFs, which could decrease the demand for Coinbase's direct crypto investment services.
Coinbase's stock decline may be due to the SEC's approval of Bitcoin ETFs, which offers a new way for investors to gain Bitcoin exposure, potentially reducing the need for Coinbase's services.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Robinhood Markets Inc. saw a decrease in its stock price by about 3.5%, possibly due to the SEC's approval of Bitcoin ETFs, which could impact Robinhood's crypto trading services.
The decline in HOOD's stock price may be influenced by the SEC's approval of Bitcoin ETFs, which introduces a competing investment method that could affect Robinhood's crypto trading volume.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
Marathon Digital Holdings Inc. saw its stock price fall by 12% following the SEC's approval of Bitcoin ETFs, which may divert investment away from Bitcoin mining companies.
The decline in MARA's stock price is likely due to the SEC's approval of Bitcoin ETFs, which provides investors with an alternative to gaining Bitcoin exposure, potentially reducing demand for MARA's shares.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Riot Platforms Inc. experienced a significant 15.1% drop in stock price, possibly due to the SEC's Bitcoin ETF approvals offering investors a new way to invest in Bitcoin.
RIOT's stock price drop can be attributed to the SEC's approval of Bitcoin ETFs, which may reduce the attractiveness of Bitcoin mining stocks for investors seeking Bitcoin exposure.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90