Simply put
- Circle, after hitting its lowest price since its debut on June 5, managed to recover a bit on Wednesday, though it still closed down over 9%.
- In addition to the drop in virtual currency values, strategic government bonds and others also experienced declines.
- Some crypto-related stocks saw a rebound in after-hours trading following Nvidia’s strong third-quarter financial results.
While tech stocks remained stable, those focused on digital assets faced significant drops on Wednesday as Bitcoin and other major cryptocurrencies continued to struggle.
Circle’s stock closed down nearly 9% at $69.72, recovering earlier in the day from a dip below $69, marking its lowest point since listing on the New York Stock Exchange.
Strategy, the largest global crypto treasury, was one of the hardest hit, plunging nearly 10%, while Bitmine Immersion, which focuses on Ethereum, fell 9.6%. Sharplink Gaming, tracking Ethereum, dropped over 6%.
Circle, Strategy, and Bitmine saw a rise in after-hours trading after Nvidia’s promising report, easing concerns about AI company valuations that had been weighing on the risk-oriented market.
Currently, Bitcoin trades around $92,000, down 2.7% over the last 24 hours, as per CoinGecko data.
Throughout trading hours, Bitcoin fell below $88,600 for the first time since late April. Its price has dropped 4% since the start of the year, just weeks after reaching an all-time high of over $126,000.
Ethereum also fell 2%. Meanwhile, XRP and Solana were down 4% and 2%, respectively, despite successes with exchange-traded funds related to these tokens and the upcoming listings of several ETFs tracking these assets.
Underwater stock
Bitcoin miners faced significant setbacks as MARA Holdings, Riot Platforms, and CleanSpark saw drops ranging from 4% to 6.5%.
These companies, which have been reallocating resources for AI systems, experienced a slight rise after NVIDIA’s report, though their stock prices are still down over 40% for the past month.
Coinbase fell 1.8% but teased the launch of prediction markets on XPost, hinting at a potential “new era” for the company.
Robinhood Markets bucked the trend, rising 3.3%, while Galaxy Digital inched up by 0.7%.
The overall sentiment toward the cryptocurrency market appears to be waning. Nearly 70% of respondents in a Myriad prediction market forecast Bitcoin will drop further, while a smaller portion believes it could rebound to $115,000, reversing the previous week’s trend.
Przemysław Kral, CEO of Zondacrypt, mentioned in an email that Bitcoin “could fall further” due to increasing “economic uncertainty” and reduced expectations regarding interest rate cuts by the Federal Reserve.
