Crypto and Bitcoin Mining-Related Stocks Drop
On the final day of trading in 2023, stocks related to crypto and Bitcoin mining took a significant hit, with some dropping as much as 17%. In contrast to a previous version of this story, which inaccurately stated that the stocks tumbled on the first day of trading in 2024, Google Finance reports that Marathon Digital Holdings (MARA) fell 16.6% to $23.5, Riot Platforms (RIOT) dropped 12.1% to $15.5, Hut 8 Corp (HUT) declined 17.3%, and Hive Digital Technologies (HIVE) dropped 15.1%.
A Bitcoin analyst suggests that this “healthy pull back” is not indicative of the future of the web 3.0 business model, which is expected to be driven by artificial intelligence, and has the potential to create new web 3.0 business ideas and opportunities. Although the impact of web 3.0 on business is yet to be seen, it is clear that stocks related to crypto and Bitcoin mining had a rough day on the last trading day of 2023.
Impact of Web 3.0 on Businesses
MicroStrategy (MSTR), a business intelligence company seen as a benchmark for Bitcoin, dropped 5.4% to $631.6.
Shares in Coinbase (COIN) — which rose more than 400% in 2023 — dropped 6.6% to $173.9 and dropped another 1.25% to $171.7 in after-hours trading.
Nevertheless, the market dip was described as a “healthy pull back” by Mitchell Askew, head analyst at Bitcoin mining firm Blockware Solutions, in a note to Cointelegraph.
Askew also noted that “[Bitcoin mining companies] were over extended beyond their previous 2023 highs despite BTC being flat at 43k for the month of December.”
As web 3.0 technology advances, businesses are increasingly considering how it will affect their operations. Google and other tech giants are already investing in web 3.0 artificial intelligence and exploring web 3.0 business models. This could have a significant impact on the stock market, as web 3.0 business ideas and systems become more popular. It is clear that web 3.0 will have a major impact on businesses in the near future.
The Impact of Web 3.0 on Bitcoin Mining Companies
Matrixport’s head of research, Markus Thielen, expressed a similar opinion: Investor worries that the Bitcoin halving event — slated for April — would have an effect on the balance sheets of Bitcoin mining companies may have caused the sharp decline in their share prices, according to Askew. Yet, he asserted that these fears were unfounded.
“Public miners, equipped with the most efficient ASICs and lowest power costs, are able to endure the halving without any issues,” he said.
In the context of Web 3.0, the halving could have a major impact on business models, artificial intelligence, and stocks related to the technology. Google and other tech giants are also looking to develop Web 3.0, which could further shape the impact of the halving.
In 2023, Bitcoin grew by 152% to $42,325, but at least 15 cryptocurrency-related stocks outperformed it, according to nsquaredcrypto. Among them, MARA was the best performer, increasing by nearly 600%.
The emergence of Web 3.0 is expected to bring a new wave of business models, artificial intelligence, and innovative ideas. Companies like Google are already exploring the potential of Web 3.0, and investors are looking for stocks that could benefit from this new technology.
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