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Core Scientific debacle also drags down shares of other Bitcoin mining companies



Key facts:
  • Bitcoin price shows support at $20,000 after reaching $21,000.

  • In 48 hours, miner Core Scientific fell 78 percent, while Amazon and Meta fell about 25 percent.

In the past 48 hours, the share price of Core Scientific (CORZ), one of the largest bitcoin (BTC) mining companies, has dropped 78 percent. As reported by CryptoNews, its free fall came after it became known that the company is likely to go bankrupt.

With this move, the stock of Core Scientific is now worth $0.2, its all-time low, after being listed on the exchange a year and a half ago for $10. Its highest price so far was $13.8 11 months ago, in November 2021 as bitcoin rallied, according to data from the Yahoo Finance browser.

Following the news of Core Scientific’s possible bankruptcy, shares of other companies in large companies in bitcoin mining has also dropped. According to the scout’s records, this was the case, for example, with Argo Blockchain (ARBK), which retreated by nearly 30 percent. Marathon Digital Holdings (MARA), Hut 8 (HUT), and Bitfarms (BITF) also declined by about 12 percent each.

As stocks fall, bitcoin remains stable

As for other major companies related to the market, smaller declines have been recorded. Examples include MicroStrategy (MSTR), the company with the largest number of bitcoins, and Coinbase (COIN), the world’s second largest bitcoin exchange. cryptocurrencies with the highest trading volume and the largest publicly traded. Shares of both fell about 6.7 percent after Core Scientific’s collapse.

The graph compares the drop in the share price of Amazon, Meta, and Core Scientific with the price of bitcoin.
After sharp declines in Core Scientific (CORZ), Amazon (AMZN) and Meta (META), bitcoin posted gains for the week. Source: TradingView.

In addition, among the major Wall Street companies with which bitcoin correlated with prices in 2022, there are two giants that have gone off the rails. These are Amazon (AMZN) and Meta (META), the company that owns Facebook, Instagram and WhatsApp, which declined by about 25 percent. in less than 48 hours after the financial results were presented.

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Against this general backdrop, bitcoin trades above $20,000 for the fourth consecutive day, after spending three weeks below this level. Thus, cryptocurrency shows stability for the time being in this range, despite the fact that stocks related to its market have collapsed.

After bitcoin touched USD 21,000On the day of Core Scientific’s news, it touched its highest in a month and a half, then plummeted 4 percent to USD 20,000. It is this figure that it has held support for the past 24 hours, registering some gains and an increase of nearly 4 percent for the week.

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