Crypto Stocks Slump as Bitcoin, Ether Tumble

Bitcoin and ether fell on Monday as risk-off sentiment grew in global markets.

Shares of crypto companies also followed this trend, with many miners losing more than 10 percent in pre-market trading, while cryptocurrency exchange Coinbase fell 9 percent.

Shares of crypto companies fell on Monday, with Bitcoin {{BTC}} and Ethereum {{ETH}} falling to their lowest levels in months amid rising tensions in the Middle East and concerns about the strength of the global economy.

Crypto exchange Coinbase (COIN) fell more than 9% in U.S. premarket trading. Software developer MicroStrategy, which has a policy of buying Bitcoin and holds more than 1% of the total supply to be mined, lost 13%. Crypto asset manager CoinShares fell 7.5% in Sweden.

Cryptocurrencies fell after data from the US showed the world’s largest economy may not be as strong as previously thought. The Labor Department released weaker-than-expected jobs figures and a higher-than-expected unemployment rate on Friday. Tensions have risen in the Middle East after Iran threatened to attack Israel following the killing of Hamas political chief Ismail Haniyeh in Tehran last week. Haniyeh was designated a terrorist by the US in 2018.

Bitcoin, the largest cryptocurrency by market cap, fell as much as 15% on Monday, recovering to trade around $52,000 after falling below $50,000 for the first time since February. Ether, which was No. 2, fell for a seventh straight day and posted its biggest drop since May 2021. The CoinDesk 20 Index (CD20), a measure of the broader crypto market, fell nearly 20% and was 16% lower as of 09:00 UTC. Stock markets in Asia and Europe also fell.

Miners have been on the decline along with bitcoin, with Marathon Digital (MARA) and Iren (IREN) both down nearly 14%, Hut 8 (HUT) down 12%, and Riot Platforms (RIOT) down 11%.