Shares of crypto-linked stocks such as MARA Holdings Inc. MARA and Coinbase Global Inc. COIN traded lower Monday due to a sharp decline in Bitcoin BTC/USD
Crypto-linked stocks, such as MARA Holdings Inc. (NASDAQ:MARA) and Coinbase Global Inc. (NASDAQ:COIN), declined on Monday evening as a sharp drop in Bitcoin (CRYPTO:BTC) prices impacted the broader market.
The weakness in the cryptocurrency market comes as tech stocks sold off sharply amid fears of increasing competition in artificial intelligence. China's DeepSeek startup unveiled an open-source large language model that surpasses OpenAI's ChatGPT at a much lower cost. This news sparked fears of heightened competition for U.S. tech leaders, such as those heavily invested in AI.
The sell-off led to a 3% decline in the Nasdaq 100 and steep losses in semiconductor stocks. Notably, NVIDIA Corp. (NASDAQ:NVDA) saw its worst day since March 2020, with about $450 billion erased from its valuation.
The broader tech downturn spilled into cryptocurrency markets, with Bitcoin losing about $110 billion in market capitalization in a matter of hours.
The decline in Bitcoin's value is likely to have directly impacted the performance of crypto-linked stocks, such as Coinbase and MARA, which are typically sensitive to movements in the cryptocurrency market.
MARA shares closed down 8.53% at $18.29 and Coinbase Global shares closed down 6.64% at $278.21 at publication on Monday, according to Benzinga Pro.
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