Bitcoin Drops Below $70K: Impact on Crypto Stocks
Bitcoin broke $70,000 on Friday, falling to about $68,900 by late morning, its lowest since mid-August.
More than $1.6 billion in leveraged crypto positions were liquidated as the level gave way, per CoinDesk.
Crypto stocks fell with it. One of them just lost its place in the biggest index in the world.
Here are 4 worth researching. 👇
📌 The Watchlist
1. Strategy | $MSTR: The software company that became the largest corporate holder of Bitcoin, with 850,364 coins on its balance sheet. MSCI confirmed on November 11 that Strategy will leave the MSCI USA Index after the November 30 close, under a new rule for non-operating companies. JPMorgan estimates about $2.8 billion of forced selling from MSCI funds alone. The shares closed Thursday down 6.49 percent at about $114.
2. Coinbase | $COIN: The largest crypto exchange in the United States, where trading fees rise and fall with crypto activity. It reported third quarter revenue of $1.22 billion and earnings of $2.51 a share on October 29. The shares traded near $128 around midday Friday, down about 2 percent on the day, as lower Bitcoin prices mean less trading to earn fees from.
3. MARA Holdings | $MARA: One of the largest public Bitcoin miners. Miners earn Bitcoin for securing the network, so a lower Bitcoin price squeezes the value of what they mine. The shares were down about 6 percent in premarket trading Friday at about $7.20.
4. iShares Bitcoin Trust | $IBIT: The largest spot Bitcoin ETF, which holds actual Bitcoin for shareholders. It fell 4.45 percent on Thursday. US spot Bitcoin ETFs have now seen five straight sessions of net outflows, about $1.44 billion withdrawn through November 11, according to Farside Investors data.
📌 The Part Worth Saving
A broken round number is a reason to research a stock. It is not a reason to buy blindly.
Look for:
- Whether the stock owns Bitcoin, sells the picks and shovels, or only rides the price
- Whether an index removal changes the business, or only who is forced to sell
- How much of the move is leverage unwinding, and how fast it can reverse
- Whether ETF outflows are a one week flush, or a longer change in demand
The best question: when Bitcoin breaks a round number like $70,000, do you watch the coin, or the stocks built on top of it?
Education only, not financial advice.
