Crypto Mining Stocks: What’s Going on With SOS, MARA and RIOT Today?

Crypto mining shares have been on one risky trip of late. Today, the volatility for this sector has sadly taken a detrimental flip.

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Top crypto miners together with SOS Limited (NYSE:SOS), Marathon Digital (NASDAQ:MARA) and Riot Blockchain (NASDAQ:RIOT) are all down precipitously. These miners dropped 5%, 11% and 9%, respectively, on the time of writing.

A sequence of regulatory headwinds have plagued this sector for a while. China has continued to crack down on crypto mining, first with a ban and then with subsequent enforcement actions. These crackdowns have unfold to different jurisdictions, with the U.S. reportedly looking into crypto miners as nicely.

However, right this moment, it doesn’t seem that regulatory headwinds are the reason for this sector-driven transfer. Let’s dive into what traders are watching intently right this moment with crypto mining shares.

Crypto Mining Stocks Sink Along with the Price of Bitcoin

As with any commodity producer or firm that’s thought of to be a price-taker, a drop within the underlying worth of the nice being produced usually isn’t factor. For SOS, Marathon and Riot, Bitcoin (CCC:BTC-USD) is the commodity in query.

Today, Bitcoin costs dropped considerably, on information that futures-linked liquidations in Bitcoin alone exceeded $94 million. There’s an amazing quantity of speculative leverage being utilized in crypto markets by merchants. Accordingly, when spot costs drop, this leverage can amplify draw back swings. For crypto miners dependent upon excessive Bitcoin costs, that is actually not factor.

Bitcoin costs declined roughly 5% on the time of writing, with crypto miners seeing heavier losses. It seems the implicit leverage to Bitcoin costs crypto miners present has led to this wider decline.

As the worth of Bitcoin continues to fluctuate, crypto miners might even see outsized volatility for a while. Accordingly, these shares seem to even be getting caught up in a broad de-risking in markets right this moment.

On the date of publication, Chris MacDonald didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the Publishing Guidelines.

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