Bitcoin-related stocks like Microstrategy fall with crypto market drop and investor caution from Fed

From Investing.com: 2024-12-20 08:25:14

Shares of companies with significant cryptocurrency exposure, like Microstrategy, Marathon Digital Holdings, and Coinbase, saw a downturn in Thursday’s trading session due to the Federal Reserve’s signals of interest rate caution and a pullback in Bitcoin’s value.

Bitcoin’s 10% drop this week impacted stocks associated with digital currencies, leading to a notable slide in crypto-related equities. Smaller tokens like Ether and Litecoin experienced even steeper declines due to reduced speculative interest.

A record outflow of $680 million from US Bitcoin exchange-traded funds signals investor caution towards speculative crypto assets. This outflow, the largest single-day loss for these funds, reflects a broader market apprehension towards the volatile cryptocurrency market.

Investors are showing heightened caution as they reassess expectations following the Federal Reserve’s stance and crypto market volatility. The implications for companies like Microstrategy remain uncertain as market participants evaluate the potential impact of further interest rate hikes on speculative investments.



Read more at Investing.com: Microstrategy, other bitcoin-linked stocks slip as crypto market cools off By Investing.com