Companies heavily invested in cryptocurrencies such as MSTR, MARA and Coinbase have seen their stock decline after the global market slide.
- Crypto-related stocks decline amidst global market turmoil. Companies like MARA, MSTR, Coinbase hit hard by market decline.
On 5th August, global financial markets had one of the most significant crashes in recent years. The global stock downturn affected Japan and Taiwan at the highest level.
The impact was felt in the United States, with its major stock indices falling by 4.5%. Stock market downturn adversely impacted crypto-related stocks, including MSTR, Coin, and crypto mining companies such as MARA.
According to the report, the market crash in Asia increased concerns over the US recession amidst market uncertainty.
Crypto-related stocks plummet amid market turmoil
While global stock markets were crashing, cryptocurrency markets were hit the most. The crypto market witnessed over a $300 billion decline and $1.2 billion in liquidations. This had a massive impact on crypto-related stocks.
Source: Google Finance
After the crash, companies dealing with cryptocurrencies and using crypto, such as BTC for value, declined. For starters, companies such as MicroStrategy that hold BTC through open market purchases experienced a decline of 11%.
According to Google Finance, MSTR has declined by 22.32% over the past five days after recording an 11% decline on 5th August.
Notably, MicroStrategy was affected because it holds BTC and relies on BTC value to maintain its balance sheet and stock value.
Source: Market Screener
Coinbase was also hit by the crypto downturn as its stocks declined by 7.32%, close to the Japanese stock crash of 8%.
According to the market screener, Coinbase stock has declined by 19.10% over the past five days. This decline was coupled with 48 hours of global market fluctuations.
Source: Google Finance
Equally, crypto mining companies such as Marathon Mara were no exception. MARA stock prices have declined by 17.84% over the last few days.
This decline results from the declining value of the BTC and KASPA that MARA majors in. With the crypto market declining, MARA experienced such a drop since it pegged its value on cryptocurrency, a major investment and store of value.
What’s causing market meltdown
The stock market has experienced uncertainties since last week after FED failed to announce rate cuts. With the expected rate cuts next month, the market panicked following the Japanese stock market incident.
Japan’s stock market crashed by 8%, one of the worst days in its history. The decline was followed by Taiwan recording the worst day in 57 years and South Korea moving to stop any impacts on its markets.
Source: X
The global downturn saw more than $63 billion liquidated, thus affecting digital assets, including crypto.
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