Crypto stocks suffered losses after a sharp decline in the price of the top cryptocurrency
Tuesday, March 19, was bad for Bitcoin and other crypto-related stocks. A 7% dip in the cryptocurrency’s price led to the fall of other big-name stocks, including Tesla $TSLA, MicroStrategy, Coinbase, and others. The top cryptocurrency fell from $73,000 to around $63,000 in less than a week. The fall in price comes a day after Grayscale spot Bitcoin ETF, GBTC, witnessed record daily outflows of $642.5 million on Monday.
Bitcoin-maxi and software company MicroStrategy suffered a nearly 7.5% loss on Tuesday, trading at $1,384 at the time of writing. Today, the company completed another convertible note offering to increase its Bitcoin holdings as part of its aggressive Bitcoin buying strategy. It sold another $604 million of notes to buy 9,000 bitcoin. Former MicroStrategy CEO Michael Saylor announced on X $TWTR that the company had completed its previously announced offering of 0.875% convertible senior notes due 2031. As of today, the company holds 214,246 bitcoin, which is 1% of the total Bitcoin supply.
Tesla’s stock price has dropped 60% from its all-time high, currently trading at $171 with a 1.2% decrease in a day. The stock price fluctuated after an interview posted on X in which Tesla CEO Elon Musk was asked about his alleged drug use. His comments came after The Wall Street Journal published a story about his alleged drug intake. The EV company currently holds over 10,500 bitcoin which is worth $336 million, according to data tracked by CoinGecko.
Coinbase, the biggest publicly traded crypto exchange, declined 3% during the day, trading at $230 at the time of writing. The drop in the price is linked to the sharp decline in the price of Bitcoin.
Other stocks, such as Square $SQ, headed by Jack Dorsey, witnessed a nearly 2% decline, hovering around $80. In the same vein, crypto-friendly company Robinhood’s shares fell 5% to $17, while crypto mining company Riot Platforms suffered an over 2% loss, dropping to $11.
Bitcoin’s sudden price drop may not indicate the start of a bearish trend, and experts believe that it will soon recover and reach new heights.
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