BITO, COIN, RIOT, BTBT, MSTR Stocks at Risk as BTC Price Recoils

Crypto-related stocks have come under pressure this week as demand for Bitcoinand other coins waned. Bitcoin price has dropped from the month-to-date high of $28,000 to $26,500. Other coins like Ethereum, Uniswap, PancakeSwap, and Zilliqa have done worse.

The ProShares Bitcoin Strategy ETF (BITO), the biggest Bitcoin futures ETF, crashed to $13.50, lower than this month’s high of $14.67. There are signs that the fund is seeing higher outflows as many Bitcoin investors move to other assets like short-term government bonds and money market funds.

Coinbase stock price has also been on edge as the volume in its ecosystem retreats. In mot periods, Coinbase shares do well when the prices of Bitcoin and other altcoins are rising. Therefore, there is a likelihood that Coinbase will publish another weak quarterly result later this month.

Coinbaseis also having numerous legal challenges in the United States, which is impacting its performance. Its stock has also formed a bearish flag pattern, pointing to a potential bearish breakout in the coming weeks.

MicroStrategy share price has also recoiled lately. After peaking at $480 in July, the stock has tumbled to $320. While MSTR is a tech company, it has become a proxy of cryptocurrencies. It is the biggest crypto whale with Bitcoin holdings worth over $4.8 billion. Therefore, MSTR stock has fallen sharply because of the Bitcoin weakness.

Bitcoin miningstocks have also sold-off as investors brace for thinner margins and lower revenues and profits. Riot Platforms (RIOT) stock price has crashed from the YTD high of over $20 to below $10. The same has happened across other mining stocks like Argo Blockchain, BitDigital, Cypher Mining, and Marathon Digital.

Still, it is worth noting that, technically, Bitcoin is not at a major risk yet since it is in the same range where it has been in the past few months. These stocks will likely plunge if Bitcoin crashes below last month’s low of $24,800.