CleanSpark (CLSK) Stock Price Is Falling Today, Here’s Why It Could Crash Further

Bitcoin miner CleanSpark’s stock price is declining today, falling alongside BTC, which has crashed below $70,000. The CLSK stock price still faces the risk of a larger decline as Bitcoin faces downward pressure from rising inflation and the U.S.-Iran war.

CLSK Stock Price Drops as Bitcoin Crashes Below $70,000

The stock is currently trading at around $9.35, down over 5% from yesterday’s close above $10, according to TradingView data. The stock’s decline comes amid Bitcoin’s crash below $70,000, while oil prices continue to rise amid escalating tensions between the U.S. and Iran.

It is worth noting that CleanSpark is currently the 11th-largest public Bitcoin treasury, with holdings of 13,363 BTC, according to BitcoinTreasuries data. As such, the CLSK stock price typically mirrors BTC’s price action due to the company’s heavy exposure to BTC.

The CLSK stock price is also falling today amid the global sell-off sparked by surging energy prices, with Brent crude oil futures reaching $119 today. Analysts now warn that oil prices could surge to $200 per barrel, potentially shaking the global economy by driving inflation higher.

These macro trends continue to impact the CLSK stock price despite some recent positive developments. Market analyst Hamilton noted that the stock’s short interest has dropped to 34.38%, even amid the Bitcoin price decline. Furthermore, the max pain is now at $10, with call buyers clearing the sell pressure on the stock’s price.

Why The Stock Is At Risk Of A Larger Decline

In an X post, market analyst PeloSwing indicated that the CLSK stock price is at risk of a further decline if Bitcoin doesn’t reclaim the $70,000 level soon enough. This came as the analyst noted that the stock should have room to fill the daily gap and then drift up to its 50 DMA, though it will depend on BTC’s price action and a reclaim of $70,000.

From a macro perspective, the stock also risks further declines if the U.S.-Iran war drags on, especially as analysts predict oil prices could rally to $200 per barrel. Notably, Fed Chair Jerome Powell had warned at his FOMC press conference yesterday that the conflict could drive inflation higher in the near term.

Rising inflation means that the Fed is unlikely to cut rates anytime soon, which is bearish for the CLSK stock price. With the war in Iran about to enter its fourth week, crypto traders are already pricing in the possibility that the Fed will make no rate cuts this year due to inflation concerns.