Canaan Inc., a leading manufacturer of cryptocurrency mining equipment, saw its stock price plunge 5.16% in the pre-market session on Tuesday. This sharp decline coincided with a significant drop in the value of Bitcoin, the world's largest cryptocurrency.
According to reports, Bitcoin fell below the $90,000 mark for the first time since mid-January. The cryptocurrency's value dropped by 3.8% in the past 24 hours, reaching $92,393 at the time of writing. Similarly, Ethereum, the second-largest cryptocurrency, experienced a 10% decrease, falling below the $2,500 level.
As a major player in the crypto mining industry, Canaan's stock performance is closely tied to the fortunes of the cryptocurrency market. The recent downturn in Bitcoin and other digital asset prices has likely contributed to the company's stock plunge, as investors may be concerned about the potential impact on demand for Canaan's mining equipment.
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