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Crypto stocks dip after bitcoin slumps to six-week low

Published 08/01/2023, 08:38 AM
Updated 08/01/2023, 10:01 AM
© Reuters. FILE PHOTO: A bitcoin is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/File Photo
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(Reuters) - Shares of cryptocurrency and blockchain related companies fell in early trading hours on Tuesday, as bitcoin hit a six-week low following a hack at Curve Finance, a platform where users can borrow and trade in crypto.

Bitcoin, the world's biggest cryptocurrency, fell about 2% to $28,870.

Curve Finance was the victim of a hack, the company posted on messaging platform X, formerly known as Twitter, on Sunday. Losses are estimated to be over $40 million, according to media reports.

Crypto exchange Coinbase (NASDAQ:COIN)'s stock fell 6.6% and shares of blockchain-farm operator Bitfarms dropped about 7%, in early trading.

Crypto miners including Riot Platforms, Marathon Digital and U.S.-listed shares of Canada's Hut 8 Mining declined between 3.5%% and 5.4%.

© Reuters. FILE PHOTO: A bitcoin is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/File Photo

The crypto industry is at a crucial juncture, with two of the biggest industry players - Binance and Coinbase - under fire from the U.S. Securities and Exchange Commission.

Rate hikes by the U.S. Federal Reserve have also added pressure to risky assets such as crypto.

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