Cryptocurrency Shares Fall as Bitcoin Drops Under $50K, Leading to a $270B Decrease in Market Capitalization

• Crypto stocks such as Coinbase and Marathon experienced significant declines as Bitcoin fell over 13% to below $50k, marking the first occurrence since February.

Crypto stocks including Coinbase Global, Inc COIN, Marathon Digital Holdings, Inc MARA, Riot Platforms, Inc RIOT, CleanSpark, Inc CLSK, and MicroStrategy Inc MSTR dropped on Monday amid a global market downturn driven by recession anxieties.

The value of Bitcoin BTC/USD plummeted more than 13% on Monday to $50,963.57, as reported by CNBC. At one point, it reached a low of $49,111.10, its first dip below $50,000 since February.

Since Saturday, Bitcoin has decreased by nearly 18%. A week prior, on July 20, it had surged to a peak of $69,982.

Ethereum ETH/USD experienced even greater losses, falling 17% to $2,271.21, resulting in a three-day decline of 24% and negating its gains for 2024. Mining stocks also faced significant double-digit losses.

These movements follow a wider market sell-off that commenced last week. A July jobs report that fell short of expectations reignited investor concerns regarding a recession, leading the tech-heavy Nasdaq Composite to enter correction territory.

Alongside economic and geopolitical worries, crypto investors have been facing selling pressure from Mt. Gox distributions and diminishing prospects for a second Donald Trump presidency in the U.S.

Bitcoin dropped by 11% in the last 24 hours, while ether fell by 21%, resulting in a total decline in the cryptocurrency market value of approximately $270 billion, according to CNBC.

Investors can gain exposure to crypto stocks via iShares Bitcoin Trust IBIT and ProShares Bitcoin Strategy ETF BITO.