April 20, 2024

Tuesday, March 19, was bad for Bitcoin and other crypto-related stocks. A 7% dip in the cryptocurrency’s price led to the fall of other big-name stocks, including Tesla, MicroStrategy, Coinbase, and others. The top cryptocurrency fell from $73,000 to around $63,000 in less than a week. The fall in price comes a day after Grayscale spot Bitcoin ETF, GBTC, witnessed record daily outflows of $642.5 million on Monday.

MicroStrategy now owns 1% of all Bitcoin

Bitcoin-maxi and software company MicroStrategy suffered a nearly 7.5% loss on Tuesday, trading at $1,384 at the time of writing. Today, the company completed another convertible note offering to increase its Bitcoin holdings as part of its aggressive Bitcoin buying strategy. It sold another $604 million of notes to buy 9,000 bitcoin. Former MicroStrategy CEO Michael Saylor announced on X that the company had completed its previously announced offering of 0.875% convertible senior notes due 2031. As of today, the company holds 214,246 bitcoin, which is 1% of the total Bitcoin supply.

Other stocks saw a decline

Tesla’s stock price has dropped 60% from its all-time high, currently trading at $171 with a 1.2% decrease in a day. The stock price fluctuated after an interview posted on X in which Tesla CEO Elon Musk was asked about his alleged drug use. His comments came after The Wall Street Journal published a story about his alleged drug intake. The EV company currently holds over 10,500 bitcoin which is worth $336 million, according to data tracked by CoinGecko.

Coinbase, the biggest publicly traded crypto exchange, declined 3% during the day, trading at $230 at the time of writing. The drop in the price is linked to the sharp decline in the price of Bitcoin.

Other stocks, such as Square, headed by Jack Dorsey, witnessed a nearly 2% decline, hovering around $80. In the same vein, crypto-friendly company Robinhood’s shares fell 5% to $17, while crypto mining company Riot Platforms suffered an over 2% loss, dropping to $11.

Bitcoin’s sudden price drop may not indicate the start of a bearish trend, and experts believe that it will soon recover and reach new heights.

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