Crypto Stocks Plunge as Bitcoin Slides to $18.1K on Inflation Data

Coinbase has tumbled 11%, while MicroStrategy, Riot Blockchain, Marathon Digital are all down in the area of 7%.

AccessTimeIconOct 13, 2022 at 2:39 p.m. UTC
Updated Oct 13, 2022 at 3:42 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

It's a rough session for equities in general and crypto stocks in particular after Thursday morning's Consumer Price Index (CPI) report showed core inflation in September unexpectedly rising to a four-decade high of 6.6%. Headline inflation was 8.2%, also topping economist forecasts.

The news sent bitcoin (BTC) tumbling to $18,100 – not far off from its 2022 low of $17,600. At press time, the price has bounced modestly to $18,400. The major U.S. stock market averages all fell more than 2%, but are currently trying to mount a mid-morning bounce, with the S&P 500 narrowing its decline to just 1%.

Among the mining stocks, Marathon Digital (MARA) is trading lower by 7%, with Riot Blockchain (RIOT) and Core Scientific (CORZ) down similar amounts. U.K. miner Argo Blockchain (ARBK) continued to underperform the rest of the sector, down 16.5% to add to its losses following last week's decision to raise capital.

In an Oct. 12 research note, Roth Capital analyst Darren Aftahi downgraded his recommendation on Argo to neutral from buy, with a $2 price target. While Argo has taken steps to stabilize its balance sheet, wrote Aftahi, growth will become limited and the company may begin to lose market share versus other miners. Rising power costs alongside stagnant bitcoin prices are also a headwind for the company's margins, he said.

MicroStrategy (MSTR), the company that holds 130,000 BTC ($2.4 billion worth, and falling), is lower by 6.7%, while crypto exchange Coinbase (COIN) is down 11.5%.

UPDATE (Oct. 13, 2022 15:40 UTC): Updates with commentary on Argo Blockchain's stock downgrade.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.