MARA stock is down more than 15% Wednesday as COIN slumped following its Nasdaq debut.
Marathon Digital fell about 7% in Thursday morning trading.
Anticipation for theCoinbase(NASDAQ:COIN) IPO (initial public offering) was a bullish support for cryptocurrency equities includingMarathon Digital(NASDAQ:MARA) on Monday and Tuesday. Yet it appears that support has transformed into pressure, with MARA stock down more than 15% Wednesday.
Opening at $381,COIN surged in early trading Wednesday before entering a decline to a low of $310 and rebounding slightly to end the day down 14%. That declinehurt a number of cryptocurrency playsincluding MARA stock,Riot Blockchain(NASDAQ:RIOT) andMicroStrategy(NASDAQ:MSTR), the latter of which are down 15% and 13% respectively.
Coinbase had a reference price of $250, which helps to explain the downtrend since the open. However, the simple fact that the stock ended the trading day lower than it started certainly put a dampener oncryptocurrency bulls’ exuberance this week.
Over the past weeks, Marathon Digital has beenoutperforming its sector peers and the wider markets. That might be because MARA stock is highly correlated with the price ofBitcoin(CCC:BTC-USD), asInvestorPlace’sChris Markoch discussed a few weeks ago.
Bitcoin is down slightly (1%) in trading Wednesday, but it’s more likely Wednesday’s decline in Marathon Digital is because “speculators [got] ahead of themselves in MARA stock,”in the words ofInvestorPlacecontributor Ian Bezekon April 2.
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