Bitcoin Price Reversal Hits Crypto Stocks: COIN, MSTR, & MARA Fall

• The Bitcoin price failed to break through the $70,000 mark, leading to a market sell-off.
• This decline in Bitcoin’s price has also negatively impacted crypto stocks such as COIN and MARA.
• While the outlook remains uncertain, many analysts anticipate a potential rebound shortly.

Following a bullish trend in September, October has also remained positive, with a substantial influx of capital entering the market this month. This influx propelled the Bitcoin price from a low of approximately $59,000 to a high of around $69,498.

The 200-day, 50-day, and 20-day EMA bands have supported this strong momentum. That led to an overall growth of nearly 18% in October.

Over the past week, the Bitcoin price daily chart has exhibited a much-anticipated price action by piercing the $66150 hurdle. It resulted in nearly 7% gains, significantly impacting the market.

However, despite the rise in profit, booking has once again spooked many, which led it to lose some of its recent gains. The world’s leading digital asset was valued at $66,914 when writing. It has declined by approximately 2.10% in the last 24 hours on the daily chart.

This decline in the Bitcoin price has had a ripple effect across the entire crypto market. Other top assets also losing significant value.

Companies with stocks tied to cryptocurrencies are feeling the impact as well. Continue reading to assess the heat of Bitcoin’s recent price activity.

Bitcoin Price Outlook Pulls Down Crypto Stocks

Bitcoin price has been stuck in a flat-to-downward price channel since reaching its all-time high of $73,750 seven months ago. The last time Bitcoin approached the $70,000 mark was in late July. However, it quickly plummeted to below $52,000 shortly after.

Bitcoin’s price has shown a significant drop from its previous highs. In this cycle, BTC climbed to a peak of $69,498, with some analysts predicting it could reach $70,655.

The decline in Bitcoin’s price has notably impacted crypto stocks. Over the past 24 hours, stocks like Coinbase (COIN) and MicroStrategy (MSTR) have decreased their values. COIN dropped by 3%. At the same time, MSTR showed minimal movement with a slight 1% increase.

Other crypto stocks affected by Bitcoin’s downturn include Bitfarms, Riot Platforms, Hut 8 Corp, and Marathon Digital. Bitfarms fell by 2.34%, Riot by 1.2%, Hut 8 by 2.80%, and Marathon Digital by 1.90%.

Imaginable Reasons Why the Market is Tumbling Today?

According to current market data, the global cryptocurrency market has dropped by 2.02%, now at $2.32 Trillion. Significant assets like Ethereum (ETH), Cardano (ADA), and BNB show a cautious outlook.

However, Solana (SOL) bucked the trend with a 1% gain to $165. Meanwhile, it remained below its weekend high of $170.

Today’s market downturn can be attributed to a sharp increase in interest rates across Western economies. Notably, the US 10-year Treasury yield and the German 10-year Bund yield rose by 10 basis points.

Crypto prices often mirror the sentiment seen in retail stock markets. When interest rates rise due to monetary tightening aimed at curbing inflation, the cost of capital increases. This makes risk assets like Bitcoin less attractive, leading to a decline in their value as rates continue to climb.

Expectations on Triggers to watch: Whales & ETF Boost

Several key factors could influence Bitcoin’s future price direction amid the current market trends. One significant factor is the activity of Bitcoin whales.

💤 A dormant address containing 20 #BTC (1,370,949 USD) has just been activated after 13.4 years (worth 333 USD in 2011)!https://t.co/kVjmSgEdlf

— Whale Alert (@whale_alert) October 20, 2024

On Sunday, October 20, Whale Alert detected a dormant whale making its first transaction in 13.4 years. The reappearance of long-inactive BTC whales is often seen as a bearish indicator. It potentially signaled an upcoming market sell-off.

The logic is that these long-term holders are cashing in their profits. This could lead to further declines in the Bitcoin price.

Another crucial factor is the performance of US spot Bitcoin Exchange-Traded Funds (ETFs). Between October 1 and 21, Bitcoin ETFs saw net inflows of $21.23 Billion. This highlighted Bitcoin’s continued popularity among institutional investors.

This influx of capital could help Bitcoin reclaim its previous highs or even surpass them if the trend continues.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.