Crypto Stocks Plunge as Bitcoin Dips Below $99K

The cryptocurrency mining sector bore the brunt of Thursday’s market turmoil, with leading companies experiencing double-digit percentage declines. Bitdeer Technologies Group led the downward charge with a drop of more than 20%, while Bitfarms fell 17% and Cipher Mining declined 13%. MARA Holdings, which holds the most Bitcoin among miners, dropped over 10%, reflecting the severe pressure facing companies directly exposed to cryptocurrency price movements.

The mining stock declines came as Bitcoin’s price dropped below $99,000 for the first time since early May, representing a 3% decline over 24 hours and nearly 22% from its record high set just over a month ago. The sector has faced consistent headwinds in recent weeks, with Thursday’s performance marking one of the most severe single-day selloffs for mining companies this year.

The downturn extended well beyond mining stocks to encompass the entire cryptocurrency ecosystem. Ethereum and Solana, the second- and sixth-largest digital assets by market capitalization, both fell approximately 7%, hitting four- and five-month lows respectively. The contagion spread to crypto-focused financial services firms, with Galaxy Digital declining more than 12% and trading platforms Robinhood Markets and Coinbase falling about 9% and 7%.

Crypto treasuries also suffered significant losses, with BitMine Immersion, the largest Ethereum treasury, falling nearly 10% and Bitcoin-focused Strategy declining over 6%. The widespread nature of the declines across different segments of the crypto industry highlighted the systemic nature of the selloff and the interconnectedness of crypto assets and related equities.

The crypto market downturn occurred against a backdrop of broader risk aversion, with major stock indexes showing substantial losses. The Nasdaq Composite fell 2.5% while the S&P 500 declined 1.75%, reflecting investor retreat from technology stocks and other risk-sensitive assets. These traditional market indicators have held up better than digital assets over the past month despite significant economic headwinds.

Market uncertainty was exacerbated by the delayed release of October’s Consumer Price Index data, which the Bureau of Labor Statistics could not complete due to the recent government shutdown. A Wall Street Journal consensus had forecast the CPI rising 3% for the month on an annual basis, still well above the Federal Reserve’s 2% target. The Federal Reserve has maintained a cautious stance on interest rate cuts due to persistent inflation concerns.

Mixed economic signals have complicated the Federal Reserve’s policy decisions. Recent data from ADP showed U.S. employers shedding more than 11,000 jobs per week through late October, while a separate Goldman Sachs report indicated U.S. nonfarm payrolls declining by 50,000 jobs during October. These employment trends would typically favor economic stimulus, creating tension with the Fed’s inflation-fighting mandate.

Despite the current downturn, market participants showed some resilience in their longer-term outlook. In a Myriad prediction market, 55% of respondents expected Bitcoin to reach $115,000 rather than drop to $85,000, though this represented a downward shift of about 6% over the previous 24 hours. This sentiment suggests that while short-term pressures are significant, many investors maintain confidence in cryptocurrency’s recovery potential.

The combination of delayed inflation data, employment concerns, and the aftermath of the longest government shutdown in U.S. history has created a perfect storm of uncertainty for risk assets. As the Federal Reserve balances competing economic priorities and markets await clearer economic indicators, cryptocurrency assets and related stocks remain particularly vulnerable to shifts in investor sentiment and macroeconomic developments.