What To Know: Bitcoin-related investments saw significant outflows last week, totaling $457 million. This marks the first major outflow since early September, likely driven by profit-taking after Bitcoin reached the psychological $100,000 level.
Ethereum, by contrast, recorded substantial inflows of $634 million, signaling a shift in sentiment toward the second-largest cryptocurrency. Other digital assets such as Ripple’s XRP also saw record inflows amid ETF speculation, though these developments did not offset Bitcoin's retreat.
Why It Matters: The decline in Bitcoin’s value appears to have created downward pressure on stocks tied closely to the cryptocurrency market. As Bitcoin's ownership becomes more concentrated among institutional investors and ETFs, market sensitivity to price fluctuations has increased. This may have amplified the volatility of crypto-linked equities, contributing to the sell-off in companies like Hut 8, MARA Holdings and Riot Platforms.
Price Action: Hut 8 shares were down 7.46% at $25.93, MARA Holdings shares were down 6.53% at $25.63 and Riot shares were down 4.35% at $12.10 at market close Monday, according to Benzinga pro.
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