Bitcoin prices dropped to their lowest levels in almost a year on Wednesday, and this decline also impacted major crypto stocks.
Currently, Bitcoin trades around $73,013, marking a more than 3% decline within 24 hours, according to CoinGecko. It dipped below $72,000, a level not seen since November 2024. Over the past week, significant digital assets have lost close to 19% of their total value.
This decrease is occurring alongside a broader market downturn, leading to mixed opinions among market observers about whether cryptocurrencies are in a bear market.
Bitcoin’s fall extended beyond just digital currencies. Key companies in the crypto space also experienced significant losses, with Bitcoin Treasury Strategies seeing a drop of over 5% on Wednesday.
Attention will be on Michael Saylor, as he’s set to report his company’s earnings on Thursday. The Strategy’s shares, listed on Nasdaq, have tumbled more than 23% in the last month, and nearly 70% over the last six months.
Coinbase, the largest cryptocurrency exchange in the U.S., also faced a setback, losing more than 7% and closing near $169 per share.
Circle, which issues USDC and trades on the New York Stock Exchange, is down 2% at $55. Meanwhile, Robinhood saw a larger dip, falling 8% in the past day to finish at around $81.
The decline in prominent crypto stocks is occurring alongside volatility in tech stocks, which have been fluctuating more in recent weeks.
Aurélie Bartel, a principal research analyst at Nansen, commented, “It feels like the correlation between cryptocurrencies and U.S. stocks is turning positive again, with cryptocurrencies and U.S. stocks selling off at the same time.”
Bitcoin miners are also struggling amid the economic downturn.
Publicly traded companies that have transitioned to providing high-performance computing resources for the AI industry experienced further declines.
HUT 8 finished the day down 8%. Core Scientific fell nearly 9%, while Mara Holdings dropped by 9%, and IREN declined by 17%.
Many top firms in the Bitcoin mining sector are pivoting to support the AI industry as generating coins becomes increasingly challenging.
