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Coinbase, MicroStrategy, Bitcoin Miners Extend Losses Ahead of US Jobs Data
In a turbulent pre-market session on Friday, July 5, shares of major cryptocurrency companies saw significant declines as Bitcoin(BTC)’s downward spiral has intensified for the fourth consecutive day. Earlier today, Bitcoin’s price plunged 8%, extending below $54,000, marking its lowest point since February. Despite recovering from the decline, Bitcoin’s volatility has shaken the market, triggering widespread sell-offs across the cryptocurrency sector.
Coinbase, MicroStrategy and Other Crypto Stocks Slump
MicroStrategy Inc. (MSTR), known for holding a substantial amount of Bitcoin on its corporate balance sheet, bore the brunt of the crisis with its shares falling more than 6% in pre-market trading. MSTR Action
fell 6.53% to $85.09 today.
Similarly, Bitcoin mining companies like Riot Platforms (RIOT) and Marathon Digital (MARA) have suffered losses of 5.64%, 6.48%, and 8.8%, respectively. Furthermore, the price of Bitcoin is hovering around the breakeven point for miners such as Marathon Digital and Iris Energy. Furthermore, Marathon Digital’s mining production in June has dropped to 590 BTC from 616 BTC in May.
The above mentioned factors have raised concerns for the entire mining community, also influencing the actions of miners. Today, the Coinbase Stock (COIN) lost 5.71% and was valued at $212.10 in the pre-market session. Earlier, the continued offloading from Cathie Wood’s Ark Invest also had a negative impact on the stock.
Bitcoin’s price decline coincided with a significant development involving defunct cryptocurrency exchange Mt. Gox. Reports emerged that Mt. Gox moved 47,228 BTC, worth about $2.6 billion, from cold storage to a new wallet. The collapsed exchange also reported distributing payments in BTC and Bitcoin Cash (BCH) to some of its creditors.
Additionally, liquidations related to long positions have surpassed $590 million, further accelerating the downward pressure on the market. The broader cryptocurrency market has also suffered notable losses, with Ethereum falling by nearly 8%. Meanwhile, Cardano has dropped by as much as 12% and XRP has fallen by 10%. Additionally, Solana has lost 5% in value, reflecting the bearish, risk-off sentiment among investors.
Read also: Cryptocurrency Market Crash: Why Bitcoin and Altcoins Are Crashing
US Jobs Data and Corporate Earnings
Looking ahead, market participants are carefully watching the next US Employment Report for June, due today. Economists expect the report to show 195,000 new jobs added, down from May’s figure of 272,000. The unemployment rate is expected to hold steady at 4.0%, while hourly earnings are forecast to rise 0.3% in June.
These economic indicators could potentially influence market sentiment, especially in relation to inflation concerns and the Federal Reserve’s policy decisions. If the Fed remains hawkish after the data, the cryptocurrency market and related stocks could take a further hit.
Additionally, the upcoming August earnings reports for Coinbase, MicroStrategy, and Marathon Digital will be closely watched by investors. Coinbase’s Q2 earnings conference call is scheduled for August 1. After that, MicroStrategy will release its Q2 earnings report on August 6, while Marathon will release its data on August 13. Wall Street analysts expect the companies to beat expectations, which could help in a stock rebound.
Read also: Breaking News: German Government Dumps Another 1300 Bitcoins on Coinbase, Kraken, Bitstamp