Crypto stocks in the red as Bitcoin falls below $63,000

Bitcoin (BTC) saw a significant drop of 6% on Tuesday, marking its biggest single-day decline in two weeks, caused by a widespread sell-off across cryptocurrencies and other risk-prone assets.

The cryptocurrency's price fell to $62,966 before slightly recovering to $63,650. Similarly, Ethereum's ether saw a 6.8% decline, as well as other altcoins.

Crypto-related stocks tracked Bitcoin’s downswing, with Coinbase (NASDAQ: COIN) dropping 6% and Riot Platforms (NASDAQ: RIOT) losing 4.7% in premarket trading. Similarly MicroStrategy (NASDAQ: MSTR) and Marathon Digital (NASDAQ: MARA) plunged 10% and 6.6%, respectively.

Despite the day's losses, Bitcoin has still accumulated a 52% gain so far this year, buoyed by the enthusiasm around U.S. exchange-traded funds (ETFs) based on the cryptocurrency.

Last Thursday, the leading crypto asset reached an all-time high of nearly $74,000, but recent profit-taking actions and new U.S. economic data have tempered expectations for Federal Reserve interest rate cuts this year, contributing to the decline.

Over the past week, BTC’s value has decreased by nearly 9%, its most significant weekly loss since last September.

By Vahid Karaahmetovic

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