Crypto Stocks Fail to Benefit from Bitcoin’s Recent Rally

Alex Dovbnya

Crypto stocks continue to perform in line with tech stocks despite recent Bitcoin price rally

Despite Bitcoin’s impressive rally, cryptocurrency-related stocks are struggling to gain momentum.

As reported by U.Today, Bitcoin price recently hit a year-to-date high of $48,234 on the Bitstamp exchange.

Still, publicly traded cryptocurrency companies are struggling to capitalize on the recent rally. Cryptocurrency mining stocks have taken the biggest hits, with their shares losing more than half their value since November.

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Picture by bloomberg.com

Shares of Bitcoin mining firm Stronghold Digital recently plunged more than 30% after a painful loss of revenue caught some shareholders off guard. The company’s outlook for the rest of 2022 remains bleak now that it has admitted that its ambitious hashrate goal will not be achievable due to operational issues.

Shares of Bit Digital, Hut 8 Mining Corp and other top mining companies are down more than 20% since the start of the year despite the price of Bitcoin briefly turning green during the same period.

Shares of Bitcoin-focused business intelligence firm MicroStrategy have also fallen more than 10% year-to-date. The stock is also down about 41% from its November peak of 860%. That said, the company continues to double down on its unwavering support for the biggest cryptocurrency. As reported by U.Today, he recently secured a $205 million loan to buy even more Bitcoin. MicroStrategy currently holds approximately $5.9 billion in the largest cryptocurrency.

Tech stocks continue to be pummeled

According to analyst Christopher Brendler, the shares of these companies are affected by the inhospitable environment of the equity market.

Shares of some top tech companies, such as Robinhood, Wish, Roku and Opendoor, are also down more than 75% from their 2021 peak, showing that the underperformance is not limited to crypto stocks.

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