Bitcoin BTC/USD mining stocks including Marathon Digital Holdings Inc. MARA, Riot Platforms Inc. RIOT and CleanSpark Inc. CLSK are trading down Wednesday as Bitcoin BTC/USD pulls back from recent highs.
The decline comes as broader markets sell off and Bitcoin exchange-traded funds (ETFs) see outflows.
What To Know: On Tuesday, Bitcoin ETFs recorded a net outflow of $79.09 million, ending a seven-day streak of inflows. While BlackRock's ETF saw a small inflow of $42.9 million, ARK Invest's ETF had a large outflow of $134.7 million, contributing significantly to overall market outflows. Bitcoin was down 1.52% over a 24-hour period, hovering around $66,400 at the time of publication.
Traders are becoming more cautious, with some taking profits as Bitcoin struggles to hold recent gains. Market sentiment around Bitcoin appears to have weakened. Analysts believe traders are shifting to a more risk-off approach amid broader market volatility.
According to Illia Otychenko, lead analyst at CEX.IO, open interest in Bitcoin futures has decreased and funding rates have fallen.
"Bitcoin futures have seen a slight correction in open interest, signaling that some traders are unwinding positions,” Otychenko said.
The broader selloff in risk assets can be seen in market indices on Wednesday with the the S&P 500 down 1.02% and the tech-heavy Nasdaq leading declines, down more than 1.8% at last check. The upcoming U.S. elections may be adding to uncertainty. Markets tend to experience periods of elevated volatility around U.S. presidential elections.
Other crypto-linked stocks like MicroStrategy Inc MSTR and Coinbase Global Inc COIN were also seeing heavy selling pressure at the time of writing.
Marathon Digital, Riot Platforms and CleanSpark are all expected to report earnings in the coming weeks. Riot will be the first of the group to report with earnings expected after the market close on Oct. 30.
Price Action: At publication time, shares of Marathon Digital were down 5.22% at $17.99, Riot Platforms shares were down 2.82% at $9.635 and CleanSpark shares were down 5.4% at $11.57, according to Benzinga Pro.
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