Bitcoin, Ether Prices Fall Along With Tech Stocks

While the SEC hasn’t announced major actions against big crypto exchanges, the commission has threatened to sue companies offering crypto lending. WSJ’s Dion Rabouin explains why this one part of the crypto market has drawn such a strong reaction. Photo: Mark Lennihan/Associated Press

Cryptocurrencies led by bitcoin and ether slumped as part of the broader tech selloff, cementing their status among investors as risky assets quickly dumped in moments of market stress.

Coinbase failed to maintain gains following an analyst’s upgrade and other cryptocurrency-related stocks such as Marathon Digital extended losses after Bitcoin slumped

Coinbase (ticker: COIN) was down 2% to $229.58 after dropping more than 7% during the previous session as Bitcoin slid following the release of the minutes from the Federal Reserve’s meeting in December. The stock had traded higher earlier Thursday after analysts at BofA Global Research raised their rating on Coinbase to Buy from Neutral, and maintained their price target of $340. BofA said it was seeing “increasing signs of revenue diversification beyond retail crypto trading.”

Marathon Digital (MARA) fell 2.3% Thursday after sinking more than 13% on Wednesday; Riot Blockchain (RIOT) was down 4.1% Thursday after declining 12% on Wednesday; and MicroStrategy (MSTR) fell 3.3% following the previous session’s decline of 7.6%.

Marathon Digital (MARA) fell 2.3% Thursday after sinking more than 13% on Wednesday; Riot Blockchain (RIOT) was down 4.1% Thursday after declining 12% on Wednesday; and MicroStrategy (MSTR) fell 3.3% following the previous session’s decline of 7.6%.

Ethereum, the second-largest digital currency, was at $3,390, down 11.1% over the past 24 hours, according to CoinDesk.

Bitcoin’s selloff could be another sign the cryptocurrency is acting more like a tech stock than a store of value, such as gold. The tech-heavy Nasdaq sank 3.3% on Wednesday, its largest one-day percentage drop since February.

Goldman Sachs has argued that Bitcoin could be worth $100,000 if investors accept that it really is digital gold.