Crypto-related stocks like Bitcoin Marathon Digital Holdings miners (MARA) and Riot Blockchain Inc. (RIOT) and the Coinbase Global crypto exchange (PIECE OF MONEY) are trading lower after Bitcoin’s price fell on Monday morning.
Bitcoin fell about 10% early Monday morning, hitting its lowest price in over a month. Ether also saw a drop of about 8%. Other cryptos were also down, and the crypto market lost around $ 250 billion.
Shares of companies closely tied to the crypto market and sometimes used by investors as crypto proxy investments also traded lower on Monday.
Canadian Bitcoin miner Marathon Digital Holdings fell 5%. Meanwhile, Riot Blockchain, a US-based Bitcoin mining company, was down 6%.
MicroStrategy, the business intelligence software company that made the Bitcoin acquisition its second term, fell more than 4% on Monday. Square Inc. was down 2%.
Coinbase fell 3.5%, its price drop was likely affected by its announcement last Friday that it was abandoning its planned crypto lending business after the SECOND threatened to sue.
Global stock markets generally fell on Monday. The S&P 500 fell 1.7%, its worst daily performance since May. Global growth stocks, energy stocks and big banks were also hit.
The sale is largely due to investor concerns over the potential fallout from huge Chinese development firm Evergrande. Evergrande currently has over $ 300 billion in debt and recently told investors it could default on that debt, which could impact not only the Chinese economy but foreign financial centers as well.
It is likely that the Chinese government will work to contain the problem, but it is still unclear when and what it will look like.
Investors are also worried about the Federal Reserve’s removal of the monetary stimulus, which it may do after its two-day meeting this week.
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