Bitcoin Mining Company Stocks Plummet Amid Record Market Crash
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According to a report published on Twitter by Arcane Research analyst Jaran Mellerud yesterday, the top five largest mining stocks have crashed with a collective year-to-date loss of over 50%.
At press time, however, the standings had worsened, with Marathon Digital Holdings, Hut8, and HIVE Blockchain Technologies down by 69.63%, 68.92%, 69.37%, and 65.05%, respectively.
Mellerud noted that one of the reasons for the stock crash in these companies was because most of the crypto mining companies have significant Bitcoin exposure, meaning that BTC price swings affect their stock prices directly.
That said, the benchmark cryptocurrency has now shed over 60% of its value since it tapped $69K last November. Currently, BTC holds a value of $27.5K after losing 30.4% over the past seven days.
Furthermore, the BTC slump caused a massive decline in revenue for mining companies, adding additional pressure to the already weakened stock. Interestingly, the recent slump has caused the global hash rate to tap a record high, an opposite reaction to the norm.
Key Bitcoin Levels to Watch — May 12
Bitcoin refreshed its lows in the Asian session on Thursday, as the benchmark cryptocurrency hit its lowest point since December 2020, effectively erasing all the gains accumulated in 2021. This came as the Terra saga waxed stronger, with LUNA further losing 98% today as UST remains miles away from the $1 peg.
However, BTC has re-emerged above the $28K level, as the broader market descent eases. That said, the overall bias remains bearish as long as LUNA continues to lose value. In the meantime, developments around Terra should heavily dictate the broader market bias.
Bitcoin suffered a monstrous sell-off yesterday, as more whales dumped their BTC for safer assets amid growing concerns about global economic growth.
Meanwhile, my resistance levels are at $29,000, $30,000, and $31,000, and my key support levels are at $28,000, $27,000, and $26,000.
Total Market Capitalization: $1.20 trillion
Bitcoin Market Capitalization: $539.4 billion
Bitcoin Dominance: 44.9%
Market Rank: #1
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