Shares of companies engaged in bitcoin mining have sharply declined. The drop amounted to 7.68% in just two days after the sector’s total capitalization reached $94 billion.
Over the past year, the mining sector has shown impressive dynamics: from $28 billion to $94 billion, which means a growth of about 235% in just 12 months.
Investors are actively entering the sector. Last week, IREN Limited signed multi-year cloud computing contracts using the new GPU Blackwell from Nvidia. And MARA Holdings announced the purchase of 64% of Exaion, a company specializing in high-performance computing (HPC) data centers.
Despite the positive sentiment, mining company stocks came under pressure as bitcoin’s price fell below $108,000.
Miners are selling bitcoins
The market once again smells of a sell-off — miners have started transferring bitcoins to exchanges. Since October 9, they have moved about 51,000 BTC, equivalent to $5.6 billion.
Two days ago, the capitalization of mining company stocks jumped to $94 billion, but now the numbers are different — $86.91 billion, according to Bitcoin Mining Stock. The leader is IREN Limited, with $16.76 billion, but its shares fell by 9% and are trading at $61.83.
Second place goes to Applied Digital Corporation with a capitalization of $10.25 billion. Its shares (ticker APLD) dropped by about 3% and now cost $36.64. In third place is MARA Holdings, with a capitalization of $7.51 billion. MARA shares fell the most, by 11.25%, and are trading at $20.27.
Market capitalization map. Source: BitcoinMiningStock
The crypto market failed to recover
At the beginning of the week, the crypto market tried to rebound after last Friday’s crash, when more than $19 billion was liquidated.
On October 10, bitcoin was trading at $121,741, and traders were expecting a new all-time high. But the very next day the market crashed, and the price of BTC on some exchanges dropped to $104,000.
By the end of the week, the market tried to correct: bitcoin reached $115,000, and ether hovered around $4,200. However, the momentum quickly faded. At the time of writing, BTC is trading at $107,938, ETH — at $3,870, according to CoinGecko.
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The total crypto market capitalization is $3.76 trillion, a decrease of 2.18% over the past day. The Fear and Greed Index shows a “Fear” level — 28 points.
Additional pressure was exerted by recent statements from Donald Trump. His threat to impose a 100% tariff on Chinese goods crashed not only crypto, but also the stock market and commodity assets.
Against this backdrop, bitcoin still lags behind global liquidity. At the same time, gold has updated its all-time high — its market capitalization has reached $30 trillion.
