Bitcoin (BTC/USD) mining stocks are feeling the heat on Wednesday, as the cryptocurrency pulls back from recent highs. Stocks like Marathon Digital Holdings Inc. (MARA), Riot Platforms Inc. (RIOT), and CleanSpark Inc. (CLSK) are all trading down, mirroring the broader market selloff. This downward trend is partly attributed to outflows from Bitcoin exchange-traded funds (ETFs), signaling a shift in investor sentiment.
On Tuesday, Bitcoin ETFs saw a net outflow of $79.09 million, ending a seven-day streak of inflows. While BlackRock’s ETF managed a small inflow of $42.9 million, ARK Invest’s ETF experienced a significant outflow of $134.7 million, contributing significantly to the overall negative flow. This indicates that investors are becoming more cautious and taking profits as Bitcoin struggles to maintain its recent gains.
Bitcoin itself has dropped 1.52% over the past 24 hours, trading around $66,400 at the time of publication. Market sentiment around Bitcoin seems to have weakened, with analysts suggesting traders are adopting a more risk-off approach due to the broader market volatility. Illia Otychenko, lead analyst at CEX.IO, notes that open interest in Bitcoin futures has declined, and funding rates have fallen.
“Bitcoin futures have seen a slight correction in open interest, signaling that some traders are unwinding positions,” Otychenko said.
The broader selloff in risk assets is evident in market indices on Wednesday. The S&P 500 is down 1.02%, and the tech-heavy Nasdaq is experiencing even larger declines, down more than 1.8% at the time of writing. The upcoming U.S. elections are also contributing to market uncertainty.
Other crypto-linked stocks like MicroStrategy Inc (MSTR) and Coinbase Global Inc (COIN) are also facing significant selling pressure.
Investors are eagerly awaiting earnings reports from Marathon Digital, Riot Platforms, and CleanSpark in the coming weeks. Riot is expected to be the first to report, with earnings expected after the market closes on October 30.
Price Action
As of publication time, Marathon Digital shares are down 5.22% at $17.99, Riot Platforms shares are down 2.82% at $9.635, and CleanSpark shares are down 5.4% at $11.57, according to Benzinga Pro.