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Investing.com -- Crypto-related stocks across U.S. and European markets initially plummeted on Friday as investors reacted to Bitcoin's sharp decline, which saw the leading crypto drop below $80,000.
While bitcoin fell below the $80,000 mark earlier in the day, as of 10:40 am ET, it has crept back over $84,000.
The market's reaction underscores the tight correlation between Bitcoin's price and the performance of publicly traded crypto companies.
In the U.S., MicroStrategy, heavily invested in Bitcoin, is now up 5%. Coinbase (NASDAQ:COIN), a leading crypto exchange, has gained over 2%. Mining companies are also rising: Riot Platforms (NASDAQ:RIOT) is up 6%, while MARA Holdings has increased 9%, while Bit Digital has rallied 5.9%, CleanSpark (NASDAQ:CLSK) by 7.4%, and Hut 8 by 3.5%.
European markets have missed out on the gains. Germany's Northern Data has decreased by 1.4%. Sweden's Safello experienced a 5.6% drop, and Swissquote, offering crypto trading, has fallen 5.1%, indicating investor anxiety.
The earlier downturn had mirrored Bitcoin's 25% decline from its peak. Analysts attributed the slump to profit-taking and macroeconomic uncertainties such as tariffs and inflation.
The performance of crypto-related stocks remains intrinsically linked to Bitcoin's movements, making them vulnerable to market swings.