Bitcoin concept stocks have plunged today after a sudden crash in the cryptocurrency market and concerns over the upcoming Bitcoin halving event. At the time of writing, HiSun Technology (01647) has plummeted 8
Bitcoin concept stocks have plunged today after a sudden crash in the cryptocurrency market and concerns over the upcoming Bitcoin halving event. At the time of writing, HiSun Technology (01647) has plummeted 8.11% to HK$0.068; OSL Group (00863) has fallen 5.53% to HK$8.03; Blue Harbour Group (08267) has dropped 4.11% to HK$0.7; and Meitu (01357) has declined 1.52% to HK$3.23.
Crypto Market Crash
On the morning of April 2nd, the cryptocurrency market experienced a sudden crash. Bitcoin's price briefly dipped below the $66,000 mark, marking a decline of over 6%. Ethereum's price also plunged below $3,400, shedding over 7% of its value. Notably, according to HODL15Capital, Bitcoin spot ETFs saw net outflows of $88 million on April 1st, with GBTC accounting for $303 million of the outflows.
Halving Event Impact
A recent report by JPMorgan Chase highlighted that Bitcoin's "halving" event is set to occur in April, which could have a significant negative impact on the profitability of Bitcoin miners. The report warns that Bitcoin's price could potentially plummet to $42,000 per coin, representing a potential downside of over 36% from its current price.
Market Reaction
The aforementioned news has triggered a sell-off in Bitcoin concept stocks. Investors are concerned about the volatility in the cryptocurrency market and the impact of the halving event on miner revenue, leading to a sharp decline in related stocks. HiSun Technology has suffered the steepest decline, losing 8.11% of its value.
The high volatility of the cryptocurrency market remains a significant risk. The combination of the crash and the halving event could further exacerbate the volatility. Investors should exercise caution when investing in Bitcoin concept stocks and closely monitor the latest developments in the underlying market.
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