- Bitcoin is in its worst weekly sell-off since 2013.
- The plunge is dragging cryptocurrency companies, including some that recently changed their core businesses.
Some of these companies recently announced changes to their core businesses to focus on cryptocurrencies. Others added “blockchain” to their names and saw triple-digit-per cent surges in their stock prices.
But some traditionally associated with bitcoin – such as AMD, which makes graphics-processing units – are also weaker on Friday amid the heavy crypto selling.
Here’s how some of the companies were trading at 10:02 a.m. ET:
- MGT Capital Investments: -24%
- Long Island Iced Tea (changing to Long Blockchain): -22%
- Seven Stars Cloud Group (recently took a 27% stake in a blockchain-based trading system):-17%
- Riot Blockchain (formerly Bioptix, a biotech company):-16%
- Hive Blockchain Technologies (formerly Leeta Gold, an exploration company): -13%
- Siebert Financial (planning to expand into crypto trading): -11%
Bitcoin fell on Friday by as much as 25%, to below $US11,000, and was on track for its worst week of trading since 2013.
“What we’re seeing in bitcoin in recent days is what many people have been anticipating for a while, which is speculators getting burned by a sharp and aggressive correction,” Craig Erlam, a senior market analyst at Oanda, said in a note.
“The rally over the last couple of months has left bitcoin vulnerable to this kind of move, and it seems the run-up to Christmas has triggered some profit-taking on the rally and even a shift into some alternative coins,” he added.