Cryptocurrency-related stocks plummeted on Monday as Bitcoin fell to its lowest level in 18 months amid a deeper sell-off of risky assets and after a cryptocurrency lender interrupted withdrawals from its platform.
MicroStrategy Inc., which has amassed more than 129,000 Bitcoin tokens over the past two years, led the fall, falling as much as 28 percent, its biggest drop since 2017. Other cryptocurrencies such as Marathon Digital Holdings Inc. ., Riot Blockchain Inc. . and Coinbase Global Inc. they also saw huge falls of at least 15 percent each. The CryptoCompare Digital Assets 100 MVIS index, which measures the 100 largest digital assets, sank as much as 15 percent.
The sharp downward movement of Bitcoin occurred when the crypto lender Celsius Network Ltd. said it was stopping withdrawals, exchanges and transfers to its platform. Concerns about the sustainability of the high yields offered by the company have arisen in recent weeks after the collapse of the stable currency TerraUSD (UST), which promised yields of up to 20 percent to depositors.
“Fans of cryptocurrencies have become accustomed to volatile travel, but these roller coaster descents are getting more and more stomach-churning,” said Susannah Streeter, a senior investment and market analyst at Hargreaves Lansdown. “With the era of cheap money coming to an end, traders are becoming much more risk-averse and turning their backs on cryptocurrencies.”
Cryptocurrency stocks have been under pressure for months as higher interest rate prospects, a possible recession and the collapse of the Earth / Moon ecosystem in May weighed heavily on investor sentiment. The CoinShares Blockchain Global Equity Index, which tracks 49 companies around the world with cryptocurrency exposure, has fallen more than 38 percent so far this year, at the rate of its worst annual performance on record.
While risky assets are generally lower on Monday morning, the fall in crypto stocks has been exacerbated by the rapid fall in Bitcoin prices. The world’s largest digital asset sank as much as 15% and broke below the $ 24,000 level as it fell for the seventh day in a row.