Year-End Crypto Sell-Off: Bitcoin Miners and Stocks Take Profits

• Cryptocurrency-Related Companies in the U.S. Experience Heavy Sell-Off
• Coinbase and MicroStrategy Shares Decline
• Steep Losses for Marathon Digital Holdings and Riot Platforms
• Investor Behavior and Bitcoin's Performance
• Performance of Crypto Stocks in 2023

Cryptocurrency-Related Companies in the U.S. Experience Heavy Sell-Off

On Friday morning, a significant sell-off of shares occurred in U.S.-listed cryptocurrency-related companies. Investors were seemingly taking profit on the final trading day of 2023 following a remarkable rally in that year.

Coinbase and MicroStrategy Shares Decline

There was a reported 8% decline in the shares of cryptocurrency exchange, Coinbase, during Friday's early trading hours. Meanwhile, MicroStrategy, known for its significant accumulation of bitcoin, and with approximately $6 billion in BTC within its treasury, experienced a near 7% drop in shares.

Steep Losses for Marathon Digital Holdings and Riot Platforms

Nasdaq-listed bitcoin miners, Marathon Digital Holdings and Riot Platforms, faced even more substantial losses, with declines of above 10% recorded. Additionally, shares of CleanSpark and Hut 8, both relatively smaller public miners, declined by nearly 20%.

Investor Behavior and Bitcoin's Performance

Many speculate that this sell-off was possibly influenced by investors seeking to secure their profits for 2023. This would mark the end of a remarkable year for the previously struggling asset class, where bitcoin's price rally remained below its annual highs in anticipation of a prospective spot-based ETF approval in the U.S.

At the time, BTC was trading slightly below $42,000, lower than its nearly $45,000 local peak recorded in early December. However, it was still up 155% for the year.

Performance of Crypto Stocks in 2023

Despite the downturn, crypto stocks had a fruitful year in 2023. Coinbase's shares increased by nearly 400%, while stocks of miners multiplied several times over.

Edited by Jonathan Stoker