A massive sell-off worth $1.65 trillion swept through the market on Friday, impacting bitcoin mining stocks and wiping out tens of millions in value among the top 20 publicly traded companies. This decline reflected the wider losses seen in U.S. stock markets, underscoring the increasing vulnerability of the sector to macroeconomic factors and changes in investor sentiment.
Global Sell-off Triggers Volatility in Crypto Mining Stocks
In yesterday's market decline, statistics from bitcoinminingstock.io reveal that IREN Limited (IREN) maintained its status as the top bitcoin mining firm by market capitalization, valued at $16.21 billion, despite a 6.38% drop in its stock price to $59.77. In contrast, Applied Digital Corporation (APLD) emerged as a notable exception, experiencing a 16.04% increase to $33.99, boosting its valuation to $9.51 billion.
Bitmine Immersion Technologies (BMNR), known for its ETH treasury operations, faced one of the most significant daily losses, plummeting 11.29% to $52.47, with a market cap of $9.09 billion. Riot Platforms (RIOT) and MARA Holdings (MARA) also encountered considerable declines of 5.70% and 7.67%, respectively, closing at $21.01 and $18.65 on Friday afternoon.
Within the mid-cap sector, Cipher Mining (CIFR) dropped 5.66% to $16.97, holding a valuation of $6.67 billion, while Core Scientific (CORZ) achieved a modest gain of 2.66% to $18.52, raising its market cap to $5.65 billion. Cleanspark (CLSK) fell 4.03% to $19.28, maintaining a market value of $5.42 billion, and Terawulf (WULF) experienced a slight decline of 0.58% to $13.51. Hut 8 Corp. (HUT) saw a decrease of 6.01% to $43.57, rounding out the top ten with a market cap of $4.6 billion.
Among the smaller-cap miners, Bitdeer Technologies (BTDR) faced the largest drop of the day, down 13.31% to $17.78, with a valuation of $3.77 billion. Bitfarms (BITF) provided a rare positive highlight, increasing by 0.71% to $4.20. HIVE Digital Technologies (HIVE) fell 5.02% to $6.61, while Northern Data AG (NB2.DE) decreased by 1.74% to $19.73. Bit Digital (BTBT) dropped 6.46% to $3.76, and American Bitcoin Corp. (ABTC) fell 9.16% to $5.95.
Further down the rankings, Cango Inc. (CANG) saw a 7.01% decrease to $4.31, Bitfufu Inc. (FUFU) fell 4.34% to $3.74, and Canaan Inc. (CAN) experienced a sharp decline of 10.65% to $1.09. In contrast, Digi Power X Inc. (DGXX) defied the overall market trend, rising 15.53% to $3.05, although it remains the smallest company in the group with a market cap of $136.36 million.
The increasing partnership between traditional finance and blockchain companies like Ripple is propelling Europe’s progress in adopting digital assets. On October 10, Ripple’s Managing Director for the U.K. and Europe, Cassie Craddock, shared on the social media platform X that the European Union’s Markets in Crypto-Assets Regulation (MiCA) has bolstered institutional trust in blockchain integration.
"MiCA has empowered European banks and financial institutions [FIs] to engage more deeply with the industry," Craddock stated, further adding:
Consequently, we are witnessing numerous banks and FIs, including Societe Generale and BBVA, developing digital asset custody and tokenization capabilities in collaboration with crypto-native firms like Ripple.
Nevertheless, she pointed out that despite these advancements, "many obstacles still exist to realize the full potential."
Craddock elaborated that tokenization aligns with the European Union’s objectives for a savings and investment union by reducing costs, enhancing efficiency, and broadening access to funding and investment opportunities for businesses.
She warned that global rivals are swiftly moving to leverage blockchain innovation and urged the EU to "act quickly and sustain the momentum" to preserve its competitive edge. The Ripple executive expressed:
We are genuinely enthusiastic about the prospects for the blockchain sector in Europe and eager to contribute to shaping the future of tokenization.
Her remarks underscore both a sense of optimism and a call to action as Europe aims to strengthen its position in digital finance through the regulatory clarity provided by MiCA and collaborative efforts within the industry.
Bank of England Governor Andrew Bailey has detailed plans to allow widely utilized stablecoins access to central bank accounts, while cautioning that these tokens could transform Britain’s financial landscape.
As reported by the Financial Times, Bailey characterized stablecoins as a technology capable of decoupling money holding from credit provision, which could potentially diminish the influence of commercial banks within the economy.
The governor asserts that this transition would necessitate careful oversight to maintain the connection between money and credit creation that is essential for economic activity.
His remarks come as the Bank of England prepares to release a consultation paper regarding its systemic stablecoin framework, which will establish standards for tokens that are used extensively for everyday transactions or for settling tokenized financial markets.
BoE Suggests Access to Central Bank Accounts Due to Deposit Drain Worries
Bailey clarified that the current financial system in Britain merges money holding with credit provision through fractional reserve banking, where deposits from commercial banks directly facilitate lending to households and businesses.
He pointed out that stablecoins could enable a different structure where money and credit provision are somewhat distinct, allowing banks and stablecoins to coexist while non-banking entities engage in more lending activities.
The central bank has also suggested ownership caps ranging from £10,000 to £20,000 for individuals and £10 million for corporations concerning systemic stablecoins.
Sasha Mills, the Bank’s executive director for financial market infrastructure, mentioned that these limits would “reduce financial stability risks arising from significant and swift withdrawals of deposits from the banking sector.”
Bailey emphasized that the assets backing stablecoins must be devoid of credit, interest, and exchange rate risks to maintain value stability, and should be supported by insurance schemes and statutory resolution frameworks akin to those for bank deposits.
He further stated that exchange terms need to be transparent, consistent, and easily convertible into other forms of money, rather than reliant on crypto exchanges and their operational terms.
The governor recognized that while the technology behind stablecoins is innovative, it raises a longstanding central banking issue regarding the assurance of the connection between money and credit creation.
Crypto Sector Opposes Proposed Stablecoin Limitations
Tom Duff Gordon, the vice-president of international policy at Coinbase, expressed to the Financial Times that "setting limits on stablecoins is detrimental to UK savers, harmful to the City, and adverse for sterling," noting that no other significant jurisdiction has found such caps necessary.
In a similar vein, Simon Jennings, executive director of the UK Cryptoasset Business Council, contended that "restrictions simply do not function effectively in reality" since stablecoin issuers are unable to track token holders in real time.
He cautioned that implementing caps would necessitate expensive new systems, such as digital IDs or ongoing coordination between wallets.
Riccardo Tordera-Ricchi, director of policy at The Payments Association, also remarked, "just as there are no restrictions on cash, bank accounts, or e-money, there is no justification beyond skepticism for imposing limits on stablecoin ownership."
This backlash risks escalating tensions between the Bank of England and the Treasury after Chancellor Rachel Reeves pledged in her Mansion House address to "advance developments in blockchain technology, including tokenized securities and stablecoins."
In light of the persistent criticism, the Bank of England has indicated that its suggested limits could be "transitional" as the financial system adapts to the rise of digital currency.
