Bitcoin Mining Stocks Plummeted 20%-30% as Nvidia's Downturn Affects Crypto Market

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Bitcoin showed a modest recovery, while mining stocks faced severe declines, raising concerns regarding the value of miners’ AI infrastructure. Riot Platforms (RIOT) lost 16%, and Core Scientific (CORZ), TeraWulf (WULF), and Bitdeer (BTDR) plummeted as much as 30%.
A market-wide sell-off resulted in $1 billion being wiped away from leveraged crypto positions, showing significant ties between crypto and tech stocks.
Focus shifts to imminent decisions from the Federal Reserve and earnings from major tech companies.

Bitcoin (BTC) recovered slightly from earlier lows, trading around $101,500, yet faced a 3% decline over the day. Other tokens like render (RNDR) and filecoin (FIL) saw double-digit losses, and Solana also fell more than 10%.

Nearly $1 billion worth of leveraged derivatives positions across crypto assets were liquidated, as per CoinGlass data.

The Nasdaq encountered a 3% drop, driven primarily by a 17% decrease in Nvidia, which lost $465 billion in market value within a single day, further highlighting the correlation between bitcoin and tech stocks, according to Goeffrey Kendrick.

Major declines affected crypto-adjacent stocks, with Coinbase (COIN) and Galaxy (GXY) falling 6.7% and 15.8% respectively, while MicroStrategy, a significant corporate bitcoin holder, managed a mere 1.5% decline.

Bitcoin Mining Stock Collapse

Bitcoin mining stocks experienced even steeper losses, with Riot Platforms (RIOT) and MARA Holdings (MARA) dropping by 8.7% and 16%, respectively. Companies redirecting towards high-performance computing for AI training suffered even larger drops, with Core Scientific (CORZ), TeraWulf (WULF), Bitdeer (BTDR), and others facing 25%-30% declines. Aurelie Barthere suggested the market needed a trigger for profit-taking corrections.

Attention remains on Federal Reserve meetings and upcoming earnings reports, with market participants watching for strong performance from Nvidia and other tech firms to maintain momentum. The sell-off could also present an ideal entry point for altcoin investors, particularly for higher-beta tokens like Solana (SOL) amidst the recent decline.