On the final trading day of 2023, major cryptocurrency and Bitcoin mining-related stocks experienced a substantial downturn, with some plunging as much as 17%. This market correction, however, was characterized by Bitcoin analyst Mitchell Askew as a “healthy pullback.” Notably, Bitcoin mining firms faced the brunt of the impact during this period, as indicated by data from Google Finance.
Year end crypto stock drop deemed a ‘healthy’ correction by experts
Marathon Digital Holdings (MARA) saw a significant decline of 16.6%, closing at $23.5 on December 29. Concurrently, Riot Platforms (RIOT) experienced a 12.1% drop, settling at $15.5. Other key players in the industry, including Hut 8 Corp (HUT) and Hive Digital Technologies (HIVE), also witnessed declines of 17.3% and 15.1%, respectively. MicroStrategy (MSTR), considered a proxy for Bitcoin, recorded a 5.4% decrease, reaching $631.6.
In the realm of cryptocurrency exchanges, Coinbase (COIN), which had seen an impressive 400% surge throughout 2023, saw a 6.6% decline, closing at $173.9. In after-hours trading, the slide continued, with shares falling an additional 1.25% to $171.7.
Despite these setbacks, Mitchell Askew, the head analyst at Bitcoin mining firm Blockware Solutions, reassured the market by describing the dip as a “healthy pullback.” He noted that Bitcoin mining firms had become overextended beyond their previous 2023 highs, despite Bitcoin maintaining a flat value around $43,000 for the month of December.
Askew suggested that the significant fall in share prices for Bitcoin mining companies might also be linked to investor concerns regarding the upcoming Bitcoin halving event scheduled for April. However, he dismissed these concerns as largely “unsubstantiated,” pointing out that public miners possess the most efficient Application-Specific Integrated Circuits (ASICs) and the lowest power costs, enabling them to navigate the halving without significant issues.
Despite Bitcoin’s overall gain of 152%, reaching $42,325 in 2023, it was outperformed by at least 15 cryptocurrency-related stocks, according to nsquaredcrypto. Notably, Marathon Digital Holdings (MARA) emerged as one of the standout performers, boasting an impressive nearly 600% increase over the course of the year.
Leave a comment