In short
- Crypto markets are in turmoil due to macroeconomic uncertainties.
- The share prices of the ten largest miners, measured by market value, have fallen over the past month.
- Miners and other major crypto stocks were well into negative territory on Thursday.
Bitcoin miners and other crypto-focused stocks tumbled Thursday amid a broader downturn in crypto markets and other risk assets, fueled by the same macroeconomic uncertainties that have roiled markets for weeks.
Miners Bitdeer Technologies Group and Bitfarms fell more than 20% and 17% respectively, while Cipher Mining fell 13%. Share prices of other industry leaders facing headwinds in recent weeks were well into negative territory, including MARA Holdings, which owns the most Bitcoin among miners and fell more than 10%.
These declines came as Bitcoin’s price fell below $99,000 for the first time since early May. The largest cryptocurrency by market cap recently fell 3% in the past 24 hours to $99,371, down almost 22% from its all-time high just over a month ago.
Ethereum and Solana, the second- and sixth-largest digital assets by market capitalization, recently fell about 7% each, hitting four- and five-month lows, respectively.
Galaxy Digital recently fell more than 12%, while Robinhood Markets and crypto exchange giant Coinbase fell about 9% and 7%, respectively. Treasuries were also hit hard, with BitMine Immersion, the largest Ethereum treasury, down nearly 10% and its Bitcoin-focused strategy down more than 6%.
The major indices were all solidly in the red as investors moved away from technology stocks with the Nasdaq and S&P 500, which have a significant technology component, up 2.5% and 1.75% respectively.
These measures have held up better than digital assets and companies have focused on them over the past month despite the longest government shutdown in US history – which ended late Wednesday – and concerns about inflation and the economy.
On Thursday, the Bureau of Labor Statistics failed to release its monthly consumer price index for October, with the White House saying the Bureau of Labor Statistics could not complete data collection due to the shutdown.
A Wall Street Journal consensus forecasts that the CPI will rise 3% on an annual basis this month, still well above the US central bank’s target of 2%. The Federal Reserve has remained cautious about cutting rates as inflation has remained stubborn, but has also had to balance jobs and productivity data that would promote economic stimulus and support markets that thrive on liquidity.
On Tuesday, ADP’s latest real-time estimate of labor market trends showed that U.S. employers were cutting more than 11,000 jobs per week through the end of October. A separate report from Goldman Sachs shows that U.S. nonfarm payrolls fell by 50,000 jobs in October.
In a Myriad prediction market, 55% of respondents expect Bitcoin to reach $115,000 and not fall to $85,000 – a downward shift of about 6% in the past 24 hours. (Disclaimer: Myriad is part of Dastan, the parent company of an editorially independent company Decrypt.)
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