Significant stocks linked to cryptocurrencies and Bitcoin mining, which fell as much as 17% on the final day of trading in 2023, were only a part of a “healthy pullback,” according to a Bitcoin analyst.
The daytime hours were the worst for Bitcoin mining companies, according to Google Finance. On December 29, shares of Riot Platforms (RIOT) dropped 12.1% to $15.5 and Marathon Digital Holdings (MARA) sank 16.6% to $23.5.
Hive Digital Technologies (HIVE) and Hut 8 Corp (HUT) saw declines of 15.1% and 17.3% respectively.
One company that is thought to be a stand-in for Bitcoin, MicroStrategy (MSTR), saw a 5.4% decline to $631.6.
After-hours trading saw a further decline of 1.25 percent to $171.7 for Coinbase (COIN), a cryptocurrency company whose shares had a surge of almost 400% in 2023.
Mitchell Askew, lead analyst at Bitcoin mining company Blockware Solutions, characterized the market decline as a “healthy pull back.”
Askew continued, Despite Bitcoin remaining flat at 43k for the month of December, bitcoin mining companies were overextended compared to their prior 2023 highs.
A similar opinion was expressed by Markus Thielen, chief of research at cryptocurrency financial services company Matrixport.
Last week, they alerted investors to the possibility that their stock prices were overvalued in certain situations or had simply attained fair value in relation to bitcoin.
Investor worries about how the April Bitcoin halving event will affect the companies’ balance sheets may have contributed to the sharp decline in share prices of Bitcoin mining companies, according to Askew.
However, he claimed that most of such worries were “unsubstantiated.”
According to him, public miners will not experience any problems during the halving because they have the most efficient ASICs and the lowest power expenses.
While Bitcoin climbed by 152% to $42,325 in 2023, it was surpassed by at least 15 stocks related to cryptocurrencies.
In 2023, MARA exhibited exceptional performance among stocks tied to cryptocurrencies, rising by around 600%.
