On the inaugural trading day of the year, cryptocurrency exchange giant Coinbase (COIN) experienced a significant setback, marking its most substantial daily decline since mid-2023. This dip occurred despite the concurrent surge in Bitcoin (BTC) to a 21-month high.
Closing the session at just under $157, Coinbase shares plummeted by 9.8%, according to data from TradingView. This downturn followed losses from the previous Friday, attributed to year-end profit-taking following a nearly quintupled stock price throughout 2023.
Surprisingly, the rally in Bitcoin failed to provide a boost to major mining stocks, with Marathon Digital (MARA) and Riot Platforms (RIOT) reversing early gains to close modestly in the red. Both stocks were down 1%-2% from Friday’s closing prices and nearly 10% lower than their opening figures.
MicroStrategy (MSTR) emerged as a rare positive performer in the crypto market on Tuesday. Despite closing below early highs, the company managed a 7.9% gain.
The overall decline in crypto-related stocks coincided with Bitcoin’s surge above $45,000, a level not seen since April 2022. Market participants engaged in buying activity in anticipation of imminent regulatory approval for a spot Bitcoin ETF in the U.S. Analysts foresee such approvals significantly broadening the investor base for the cryptocurrency, with Galaxy projecting over $14 billion in inflows during the first year.
As of the latest update, Bitcoin retraced from the day’s highs to $44,900, still reflecting a 3% increase over the past 24 hours.
A notable observation comes from Singapore-based 10x Research, which, in a Thursday report, highlighted that crypto stocks appeared overvalued relative to Bitcoin. This assessment follows their explosive gains in the last quarter, where many shares doubled or more in value during the year’s final weeks.
