• Riot Platforms (NASDAQ: RIOT) stock has dropped by over 20% from the YTD high due to Bitcoin price dip.
• The decline is attributed to bullish liquidations, Bitcoin’s move above the key resistance level at $30,000 and strong results of several regional banks.
• Analysts at Bernstein say that bitcoin is perfectly positioned as a safe-haven asset alongside gold.

Riot Platforms Stock Moves to Bear Market

Riot Platforms (NASDAQ: RIOT) stock price has drifted downwards in the past few days as Bitcoin and other cryptocurrencies retreated. The shares retreated to a low of $11.48 in the pre-market session. This means that the stock has dropped by more than 20% from the year-to-date high, meaning that it has moved to a bear market.

Why Did Riot Blockchain Stock Price Drop?

Riot Blockchain is one of the biggest Bitcoin mining companies in the world and competes with Argo Blockchain and Marathon Digital among others. Therefore, as in other mining industries, these companies have a close correlation with the price of their underlying assets. This explains why their stocks jumped sharply this year – between its lowest point in 2022 and its year-to-date high, Riot shares were up by more than 338%.

What Caused Bitcoin’s Dip?

The main reason for Bitcoin’s crash is bullish liquidations which happen when brokers and exchanges forcefully close positions of leveraged positions, putting prices under pressure. Another reason is that Bitcoin recently rose above key resistance level at $30,000 which usually leads to volatility when they move above or below such levels. Lastly, several regional banks published strong results leading to an inflow of more than $3 billion thus reducing fears of banking crisis significantly.

Bitcoin As Safe Haven Asset?

Analysts at Bernstein said: “Any potential dislocation, whether on the bank’s credit side or on the sovereign side …positions bitcoin perfectly as a safe-haven asset alongside gold.“ This could bode well for crypto investors especially if we see increasing liquidity problems in traditional markets due to inflationary pressures or further restrictions due to pandemics or political tensions etc.. Furthermore, this could attract new investors who want exposure to digital assets but are not comfortable with some of crypto volatility relative to other markets like equities or bonds etc..

Should We Buy The Dip?

It remains unclear whether Riot Platforms stock will bounce back so it is difficult give sound advice without taking into account individual investment goals etc.. However, given what we know about why Bitcoins crashed and its potential role as safe haven asset going forward there may be good reasons for considering buying dips if one sees potential long term value in crypto investments overall