CleanSpark (CLSK) shares tumbled 5.88% in pre-market trading on Monday, mirroring the broader selloff in cryptocurrency-related stocks. The plunge came amid a slump in bitcoin prices below $92,000 and rising concerns over potential increased regulatory scrutiny on the crypto and AI chip industries.
The sell-off in crypto stocks was sparked by bitcoin falling to its lowest level since November, as the prospect of higher interest rates for longer weighed on risk assets. Bitcoin declined over 2% to around $91,700 after Friday's robust U.S. jobs report fueled fears that the Federal Reserve may keep rates elevated to combat persistent inflationary pressures.
Adding to the negative sentiment were reports that the White House plans to unveil sweeping new limits on the sale of advanced AI chips by Nvidia and its peers. Traders braced for the curbs that could disrupt operations for crypto miners and AI firms, sending chip stocks like Nvidia, AMD, and Micron down over 3% in pre-market trading.
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