Cryptocurrency-related stocks fell sharply today as rising geopolitical tensions and concerns about the global economy triggered a significant decline in Bitcoin (BTC) and Ethereum (ETH) prices.
Crypto Stocks Also Fall as Bitcoin and Ethereum Fall Amid Global Tensions
Coinbase (COIN), a major cryptocurrency exchange, saw its shares fall more than 9% in premarket trading in the US.
MicroStrategy, a software company known for its significant Bitcoin assets, experienced a 13% decline. CoinShares, a Sweden-based crypto asset manager, fell 7.5%.
The decline in cryptocurrency prices comes after disappointing US economic data. The Labor Department reported employment figures that fell short of expectations and a higher-than-expected unemployment rate.
In addition, geopolitical instability in the Middle East has further increased market concerns. Following the killing of Hamas political leader Ismail Haniye in Tehran last week, Iran's threat of retaliation against Israel escalated the tension.
On Monday, bitcoin, the largest cryptocurrency by market cap, fell as much as 15% and fell below $50,000 for the first time since February before partially recovering to around $52,000.
Ethereum, the second largest cryptocurrency, fell for the seventh consecutive day, recording its steepest decline since May 2021.
*This is not investment advice.