Crypto and blockchain-related stocks bleed as investors move away from risky assets
- Investors are moving away from risky assets like cryptocurrency and blockchain-related stocks ahead of the Fed meeting.
- Stocks of MicroStrategy, Riot Blockchain Inc and Marathon Digital holdings plummeted.
- Cryptocurrencies in the top 30, based on market capitalization, suffered a double-digit drop in prices.
Investors have a risk-off approach ahead of the Federal Reserve’s meeting on Tuesday and Wednesday, reducing their positions in cryptocurrency and blockchain-related stocks. Bitcoin price plummeted over the weekend, dropping to half of its all-time high.
Cryptocurrency stocks continue to bleed ahead of Fed meeting
The cryptocurrency market witnessed a massive price drop over the weekend. Bitcoin and altcoins in the top 30 started bleeding.
Bitcoin price dropped to half of its November high. Prices of cryptocurrency stocks tumbled as investors pulled away, in a risk-off approach ahead of the upcoming Federal Reserve meeting.
Proponents believe that the Fed’s meeting on Tuesday and Wednesday has triggered the reduction of positions in cryptocurrency stocks like MicroStrategy, Riot Blockchain Inc and Marathon Digital holdings.
After a massive bloodbath in the cryptocurrency ecosystem, over $200 billion in market capitalization was wiped out. This triggered a significant drop in cryptocurrency stock prices.
Shares of one of the largest cryptocurrency institutions like MicroStrategy (MSTR), and Grayscale Bitcoin Trust (GBTC) dropped by 8% and 13% respectively. The stock price of Tesla, the electric car company that recently revealed that it would accept Dogecoin as payment for its merchandise, resisted the drop.
Based on data from the cryptocurrency platform CoinGecko, cryptocurrencies in the top 30 based on market capitalization suffered a double-digit drop in prices. Solana, Cardano, and Terra prices dropped over 15%. Bitcoin price dropped to 50% of its all-time high.
Proponents believe that the outcome of the Fed meeting could have an impact on the prices of cryptocurrency stocks and crypto market capitalization.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
