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The share price of the largest mining companies collapsed this week amid a massive pullback in Bitcoin and other digital currencies.
The price of BTC fell below $ 47,000 the night before, and altcoins were also in the red. As a result, investors began to withdraw from the shares of mining companies due to fears that Bitcoin will update lows in the coming days.
For example, Argo and Bitfarms both fell more than 7% in value. The capitalization of other miners such as Marathon, Hut 8 and Riot has dropped more than 4% since the beginning of the week.
In general, a negative trend has been observed over the past 30 days. The mining company Marathon, for example, plummeted about 51% from $ 7.6 billion to $ 3.8 billion.
The pressure on the industry is increasing not only due to the fall in the value of digital currencies. The US Senate also hit the industry by accusing miners of harming the environment.
According to experts, if by the end of December we observe stagnation in the crypto market, then the investment attractiveness of mining companies is unlikely to improve. In this case, a further drop in the value of the shares is inevitable.
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