In the premarket session last Friday, cryptocurrency-related companies faced significant declines in their stock prices as Bitcoin continued its downward trajectory for the fourth consecutive day.

Bitcoin, the leading cryptocurrency, experienced a notable 6.5% drop to $54,450, marking its lowest point since February. The price briefly slipped below $54,000 before showing a modest recovery.

Notably, MicroStrategy Inc., a prominent firm recognized for its substantial Bitcoin reserves, encountered substantial losses in premarket trading. The company's stock plummeted by over 6% to close at $85.09.

Similarly, Bitcoin mining companies were not spared from the market downturn. Riot Blockchain and Marathon Digital witnessed declines of 7.4% and 8.8%, respectively. In a concerning trend, Marathon Digital's mining output decreased from 616 BTC in May to 590 BTC in June, highlighting operational challenges amid market volatility.

Coinbase, a major cryptocurrency exchange, also felt the impact with a 5.71% decline in its pre-market stock price to $212.10. The ongoing selling pressure from Cathie Wood's Ark Invest further exacerbated the situation, affecting Coinbase's performance.

Cipher Mining and CleanSpark saw their stock prices dip by over 8% amidst the market turmoil.

The decline in Bitcoin prices was linked to a significant development involving the now-defunct Mt. Gox cryptocurrency exchange. In preparation for creditor repayments, Mt. Gox transferred 47,228 BTC (equivalent to $2.6 billion) from cold storage to a new wallet. Additionally, the exchange disclosed plans to distribute Bitcoin Cash (BCH) and Bitcoin (TCC) payments to some creditors.

Liquidations associated with long positions exceeded $590 million, adding further pressure to the market. The broader cryptocurrency market mirrored the decline, with Ethereum, XRP, Cardano, and Solana experiencing drops of approximately 8%, 10%, 12%, and 5%, respectively. These movements reflect investor pessimism and risk aversion.

The cryptocurrency market, sensitive to developments like the Mt. Gox transfer, witnessed repercussions in Bitcoin and related stocks. Expectations of continued market volatility persist as investors monitor economic indicators and corporate earnings reports.