Year-End Crypto Stocks’ Decline Was ‘Healthy’ Pullback: Analyst

Disclaimer: An earlier version of this story correctly stated that shares fell on the first day of trading in 2024, not the last day of trading in 2023.

Major crypto and bitcoin-related stocks, which fell as much as 17 percent on the last trading day in 2023, were simply part of a “healthy pullback,” according to a Bitcoin analyst.

According to Google Finance, Bitcoin mining firms were hit hard during the day. Shares of Marathon Digital Holdings ( MARA ) fell 16.6% to $23.5 on Dec. 29, while Riot Platforms ( RIOT ) fell 12.1% to $15.5.

Hut 8 Corp (HUT) and Hive Digital Technologies (HIVE) fell 17.3% and 15.1%, respectively.

MicroStrategy ( MSTR ), a business intelligence firm seen as a proxy for BBC, fell 5.4% to $631.6.

Shares in crypto exchange Coinbase (COIN) — which has risen more than 400% in 2023 — fell 6.6% to $173.9 and fell another 1.25% to $171.7 in afternoon trading.

However, the market dip was described as a “healthy pullback” by the chief analyst of Bitcoin mining company Blockware Solutions, in a note to Cointelegraph.

“[Bitcoin mining firms] BTC was flat at 43k for December, but likely extended above the previous 2023 high, Askew added.

RELATED: Marathon, Turbulence Among Most Valuable Bitcoin Mining Stocks: Report

Markus Thielen, head of research at Matrixport, a cryptocurrency financial services firm, made a similar comment.

“[We] warned [to investors] In the past week, their stock prices have reached parity with Bitcoin, or even been overvalued in some cases.

A big drop in the share price of Bitcoin mining companies could be related to investor concerns that the Bitcoin halving event, which is scheduled to take place in April, will affect the balance sheets, Askew noted.

But he said those concerns were largely “unsubstantiated.”

“Public miners have very efficient ASICs and low power costs, which allows them to survive the halving without problems,” he said.

Bitcoin rose 152% to $42,325 in 2023, but was outperformed by at least 15 cryptocurrency-related stocks, nsquaredcrypto reported.

Mara was one of the best cryptocurrency-related stock performers in 2023, up nearly 600%.

In the year In 2023, most Bitcoin-related stocks outperformed #Bitcoin itself. pic.twitter.com/fzSojcVQUe

— Timothy Peterson, CFA CAIA (@nsquaredcrypto) December 31, 2023

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in.