As US markets recorded a fifth straight negative session for the week, cryptocurrencies were bleeding heavily as bulls were beaten.
Bitcoin price declined below a critical support level, with an analyst suggesting the drawdown could see the pioneer crypto slump to lows of $30,000. On Saturday 22 January, Bitcoin price broke below $35,000 and was on track for more than 12% in intraday declines and close to 20% over the week.
Crypto stocks like Coinbase, Voyager Digital and Marathon tumbled on Friday, with MicroStrategy also seeing a major drop.
Riot Blockchain shares plunge 15%
Riot Blockchain (RIOT) shares retreated heavily on Friday, dropping more than 14% to close at $15.00. Over the week, RIOT has declined 24% and is down more than 33% YTD.
Despite the rout seen over the past month, shares of the Bitcoin miner have still risen almost 400% over the past three years. Revenues have also doubled in each of the past three years, suggesting the business is on solid footing.
Elsewhere, Coinbase (COIN) slipped 13% to $191.97, while Robinhood (HOOD) fell 5.2% to $12.98. Coinbase shares have declined
Robinhood shares are down nearly 30% year-to-date and nearly 60% off its IPO price of $38 in July.
Voyager Digital Ltd shares fell to a 52-week low of $9.95 before recouping some of the losses to close at $10.12, about 15% lower.
Other listed crypto-centric companies that saw huge declines on Friday were Hive Blockchain (HIVE) at -16%; Marathon Digital Holdings (MARA) at -11%; Hut 8 Mining (HUT) at -13% and Bitfarms (BITF) at -14%.
MicroStrategy (MSTR) slides 20%
MicroStrategy Inc. shares fell over 20% on Friday to record the stock’s worst single-day performance since 23 February 2020. After opening at $422.84, the stock fell to $365.98 to touch a 52-week low before closing at $375.89 for an 18% downturn.
On a weekly view, MicroStrategy is down 22%, while year-to-date returns are around 33% lower.
While the decline for the enterprise software maker’s stock follows the broader market trend, it also comes after documents showed the US Securities and Exchange Commission (SEC) had rejected the company’s crypto accounting strategy.
Last week, MicroStrategy CEO Michael Saylor said the company would not sell its Bitcoin transportation even if prices continued to fall.