Crypto based stocks like Coinbase and marathon digital faced their worst week in 2024 as the crypto market saw a great crash.
Author: Sahil Thakur
Cryptocurrency exchange Coinbase experienced its worst trading week of the year, with Bitcoin miner Marathon Digital falling by 20%. A basket of crypto-related stocks tracked by Schwab also dropped to its lowest point since February, reflecting concerns about the U.S. economy and a wider selloff in risky assets. The Nasdaq slid 5.8%, marking its worst performance since January 2022.
Macroeconomic pressures, combined with September being a historically challenging month for crypto, further impacted market sentiment. Weak U.S. manufacturing data fueled fears of an economic slowdown, leading to a sharp selloff across both traditional and crypto markets. Additionally, labor market reports released on Friday underscored a softening job market, which contributed to concerns over the Federal Reserve’s next move.
Crypto equities were hit hard. Schwab’s crypto-themed ETF (STCE) plunged 11%, and Coinbase dropped 20% amidst ongoing legal battles with the SEC. Bitcoin mining firms like CleanSpark and Riot Platforms saw double-digit declines, with CleanSpark down 24% and Riot Platforms losing 17%.
Despite the downturn, JPMorgan analysts noted that trading volumes actually increased in August, suggesting some investor resilience despite the broader market woes.
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