Bitcoin Miners Lead Crypto Stock Losses Amid Wider Market Dip—With BTC Falling
Bitcoin miners and crypto stocks plunged due to a broader market downturn driven by macroeconomic uncertainties. Major miners like Bitdeer and Bitfarms fell over 20% and 17%, while Bitcoin's price dropped below $99,000, falling 22% from its recent high. Ethereum and Solana also hit multi-month lows. Other crypto-related firms like Galaxy Digital and Coinbase saw significant declines. The U.S. economic outlook remains uncertain, with inflation persisting, job losses reported, and delayed government data due to a shutdown. Meanwhile, market predictions for Bitcoin's price remain divided amidst this volatility.
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Crypto Stocks and Bitcoin Experience Significant Decline
Bitcoin miners and other crypto-focused stocks plummeted on Thursday amid a wider downturn in crypto markets and other risk-on assets, fueled by the same macroeconomic uncertainties that have troubled markets for weeks. Miners Bitdeer Technologies Group and Bitfarms were down more than 20% and 17%, respectively, while Cipher Mining fell 13%. Share prices of other leaders in the sector, including MARA Holdings, dropped by more than 10%, indicating significant pressure within the industry.
Bitcoin and Major Cryptocurrencies Hit Multi-Month Lows
The declines coincided with Bitcoin's price dropping below $99,000 for the first time since early May. The largest cryptocurrency by market capitalization was recently down 3% over the past 24 hours to $99,371, a drop of nearly 22% from its recent record high just over a month ago. Other leading cryptocurrencies, such as Ethereum and Solana, fell about 7% each, reaching their respective four- and five-month lows.
Broader Market Impact on Crypto-Adjacent Companies
Other companies with significant exposure to crypto also suffered. Galaxy Digital was recently down more than 12%, while Robinhood Markets and crypto exchange Coinbase dropped around 9% and 7%, respectively. Additionally, BitMine Immersion, the largest Ethereum treasury, fell nearly 10%, and Bitcoin-focused Strategy declined by over 6%. Meanwhile, major stock market indexes reflected a broader investor shift away from risk-on assets, with the Nasdaq and the S&P 500 falling 2.5% and 1.75%, respectively.
Macroeconomic Uncertainties and Fiscal Implications
The longest government shutdown in U.S. history—ended late Wednesday—added further uncertainty to markets already grappling with inflation concerns and broader economic instability. On Thursday, the Bureau of Labor Statistics was unable to deliver its monthly Consumer Price Index (CPI) for October, with the White House blaming delays on the shutdown. A Wall Street Journal consensus still forecasted an annual CPI increase of 3%, far above the Federal Reserve’s 2% target, fueling the Fed's caution in cutting interest rates.
Employment Data Highlights Ongoing Economic Struggles
Adding to the economic challenges, ADP's latest data showed U.S. employers shedding more than 11,000 jobs per week through late October. Separately, a Goldman Sachs report indicated a loss of 50,000 non-farm payroll jobs during the same period. These trends highlight the precarious balance the Federal Reserve must maintain between controlling inflation and supporting productivity and employment data, critical to economic recovery.
Market Predictions Around Bitcoin's Future
In a Myriad prediction market, 55% of respondents believe Bitcoin will rise to $115,000 without falling further to $85,000, representing a downward change of 6% over the last 24 hours. (Disclaimer: Myriad is a unit of Dastan, the parent company of an editorially independent Decrypt.)