Why Marathon Digital, Riot Platforms, and Microstrategy Plunged Today
The impressive volatility we've seen in many top cryptocurrencies to kick off the year has been noted by many investors. However, results have been mixed for crypto-adjacent companies, with today's moves in Marathon Digital (NASDAQ: MARA), Riot Platforms (NASDAQ: RIOT), and Microstrategy (NASDAQ: MSTR) reflecting a 7% downside move in Bitcoin (CRYPTO: BTC), which tends to drive the price action of these companies, given their large Bitcoin holdings. Notably, as of early afternoon trading, Bitcoin has plunged through the $44,000 level, generating significant long liquidations for traders and suggesting momentum is not on the side of investors right now.
As of 3 p.m. ET, shares of Marathon Digital, Riot Platforms, and Microstrategy dropped 15.1%, 9.7%, and 9.9%, respectively, over the past 24 hours. While lower Bitcoin prices do directly affect the valuations of these companies, there's more at play with these stocks today.
Let's dive into what's driving this big downside move in these crypto-adjacent companies today.
Source Fool.com
