Crypto Stocks Plunge Pre-Market Amid Security Concerns, Regulatory Delays
1min read On April 16, during pre-market trading, U.S. stocks related to cryptocurrency experienced a general decline. The most notable decrease was seen in Strategy, which fell by 2.90%. Other significant drops included coinbase, which decreased by 2.04%, riot platforms, which declined by 1.07%, and mara holdings, which saw a drop of 3.42%.
This downward trend in cryptocurrency-related stocks can be attributed to several factors. One possible reason is the recent hacking incident involving ZKsync, where the platform lost $5 million, leading to a significant plunge in its token price. This event has raised concerns about the security of cryptocurrency platforms and may have contributed to the overall negative sentiment in the market.
Additionally, the delay in the approval of the Staking ETF by the SEC has further dampened investor enthusiasm. The SEC's decision to postpone the approval has led to uncertainty and hesitation among investors, contributing to the decline in cryptocurrency-related stocks. The Pectra upgrade, which was expected to boost the ETH price, has also faced further delays, adding to the market's pessimism.
Furthermore, the co-founder of Mantra revealed that the OM token has crashed by $5 billion, drawing comparisons to the Luna 2.0 incident. This revelation has sparked fears of a potential market crash and has led to a sell-off in cryptocurrency-related stocks. The overall market sentiment has been negatively impacted by these events, resulting in the pre-market downtrend observed in U.S. stocks related to cryptocurrency.
