Continuing bearish momentum, Bitfarms Ltd. (BITF) shares fell by a further 7.38% in the premarket today, May 9, 2022. At the time of writing, the stock was trading at a price of $2.51 per share while it closed the prior session at $2.71. Friday’s regular session had registered a decline of 4.58% in the stock.
Most mining stocks have been going down since last week as the cryptocurrency market continues to crash amid the ongoing market instability. There is no recent news from the company besides its April 2022 production and mining update and the company is set to report Q1 2022 earnings on May 16, 2022.
Crypto Market Crash Down
While the earlier Fed’s reports of a half percentage point increase in interest rates gave a sigh of relief to crypto prices, they have been going down since. The panic over inflation and fears of potential recession have been harsh on the crypto market, making it crash down.
On Friday, Bitcoin declined by over 2.58% while Ethereum slid by 3.70%. Continuing the bearish sentiment, Bitcoin price has decreased by 2.25% in the past 24 hours while Ethereum by 3.41%. Moreover, in the past seven days, the overall Bitcoin price has shrunk by 13.64% and Ethereum declined by 14.15%. Sharing a similar fate are Binance, XRP, Solana, Cardano, Terra, and even the meme coin Dogecoin.
Almost every top 10 crypto price has declined in the past 24 hours as the global crypto market cap crashed down by 2.28% to $1.54 trillion. Currently, the fear and greed index for crypto is at “extreme fear”.
BITF and Mining Stocks
Given the crash down of the crypto market, crypto-related stocks like BITF. COIN, RIOT, etc., all have also been trading lower since last week. As all the major crypto prices continue to see a pullback amid the overall market weakness, mining and crypto-related stocks have also continued their decline.
Bifarms which provides computing power to cryptocurrency networks like Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash, is also plunging down with the downfall of the crypto market.
What to Expect?
The current technical conditions are implying steep corrections for both Bitcoin and Ethereum. But given the high volatility in the crypto market, the suggestion might as well be invalidated. If both Bitcoin and Ethereum sliced through their respective support levels, the chances of a downswing are huge. Both the top cryptos are currently at risk of capitulation while there is a slight chance of recovery based on the high volatility, however, the market instability indicates a pessimistic future.
Conclusion
If the crypto market continues its bearish sentiment, it is very likely that crypto-related stocks including BITF will also incur further losses.
