Bitcoin Miner, Coinbase Shares Decline Amid Crypto Market Volatility

Bitcoin miner and Coinbase shares experienced significant declines on Tuesday, notwithstanding the bullish performance of BTC before the spot ETF decision.

A research firm noted that crypto equities appeared overvalued following their price multiplication in the previous quarter.

Coinbase (COIN) experienced its most significant daily decline since mid-2023 on Tuesday, while bitcoin (BTC) surged to its highest level in 21 months.

According to TradingView data, Coinbase shares closed the first trading session of the year at just under $157, a decrease of 9.8%. The action prolonged Friday’s losses as investors booked profit at the year’s close after the stock price nearly quintupled in 2023.

Bitcoin miners, too, failed to benefit from the cryptocurrency upswing, reversing substantial early gains to close marginally in the red. Riot Platforms (RIOT) and Marathon Digital (MARA) were each down 1%–2% from Friday’s close and nearly 10% from their opening prices.

MicroStrategy (MSTR), an uncommon cryptocurrency named in the green on Tuesday, closed significantly below its early highs but still managed a 7.9% gain.

BTC surpassed $45,000 for the first price since April 2022 as market participants purchased in anticipation of imminent U.S. regulatory approval for a spot BTC ETF, contributing to the decline among crypto stocks.

Analysts anticipate that these vehicles could significantly increase the asset’s investor base, with Galaxy anticipating inflows above $14 billion in the first year.

As of the publication, bitcoin had declined from its all-time highs to $44,900, exhibiting a 24-hour increase of 3%.

In a report published on Thursday, 10x Research, based in Singapore, stated that crypto equities appeared overvalued relative to bitcoin in light of their explosive gains in the fourth quarter, with many shares doubling or more in the year’s final weeks.

For example, since late October, Coinbase shares have increased by 150%, reaching a peak of $187 on December 27. Despite the recent reduction in value, the stock has nearly doubled in value in the past decade.