Bitcoin’s Downtrend Causes Crypto Stocks to Fall
Stocks that give traditional investors exposure to Bitcoin have continued trending down as the price of the largest crypto asset by market capitalization plunges following the launch of spot Bitcoin Exchange-Traded Fund (ETF) in the US market.
Stocks of major publicly traded companies that own Bitcoin, including Coinbase, MicroStrategy, and Tesla, have declined significantly over the past 30 days. Owning these stocks allows you to invest in the crypto market without holding any digital assets.
MSTR, TSLA, and COIN Plummet
As of this writing, MicroStrategy, which holds the most Bitcoin (189,100 coins) among institutions, has seen its stock MSTR drop to $449.89 following a 24-hour decline of 1.5%. The stock, which trades on Nasdaq, is down 24% over the last 30 days.
Tesla, on the other hand, a holder of over 9,850 BTC, has witnessed its stock, TSLA, shed 19.3% of its value within four weeks to change hands for $206.87 at press time. The stock also trades on Nasdaq.
The largest cryptocurrency exchange in the United States, Coinbase, which listed its shares on Nasdaq in 2021, has recorded a 30-day drop of 29% in its COIN stock, which now trades at $121. COIN is performing poorly despite Coinbase being selected as a crypto custodian by several Bitcoin ETF issuers.
Elsewhere, mining stocks are also suffering as Bitcoin trends down. For instance, Hut, a Canadian Bitcoin miner, has seen its HUT stock dip by over 60% in the last 30 days. RIOT, the stock tied to American crypto miner Riot Platforms, is trading at $10.82 after plummeting by 41%.
BlackRock ETF Value Hits $1.4 Billion
As crypto stocks continue to suffer, most of the Bitcoin ETFs that were approved by the United States Securities and Exchange Commission earlier this month have performed tremendously well, attracting billions of dollars. BlackRock, for instance, saw its assets under management value hit $1.4 billion earlier this week.
Several crypto analysts believe that these ETFs and the rate cuts by the Federal Reserve would cause Bitcoin to turn upwards over the coming months. They are also optimistic that the Bitcoin halving in April will fuel BTC’s price growth.
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