Crypto-stocks drop as Bitcoin corrects – buy the dip or wait?
Last Updated on 8 July 2024 by CryptoTips.eu
Some of the most important crypto-related stocks have fallen in recent days just as Bitcoin undergoes a correction. Ever since the new ATH of $74,000 in March, Bitcoin has already dropped more than 30%, impacting several companies on Wall Street.
MicroStrategy, Robinhood, Mara, Riot and Coinbase, among others, are seeing their stock values drop. Should you buy the dip or is it better to wait and see?
MicroStrategy
Bitcoin fan Michael Saylor’s investment company has had a bad month. Although the company’s share price is still up more than 85% since the beginning of this year, it has gone downhill steeply in the last month, with a loss of some 20%. Nothing to worry about yet but the Bitcoin correction cannot last all summer for MicroStrategy.
MicroStrategy is a company that has been gobbling up Bitcoin since 2020.
— Denis Gorbunov (@_DenisGorbunov) July 5, 2024
As of July 2024, it’s bought 226,331 Bitcoin or about 1% of all mined Bitcoin.
No wonder its stock correlates with Bitcoin price. pic.twitter.com/9UkbZO1UiJ
Bitcoin mining companies
Crypto is very popular in the United States, which therefore also has many Bitcoin mining companies. The best known are Riot Platforms, Marathon Digital and CleanSpark. They are all trying to adapt to Bitcoin’s new hashrate after the halving, and have all announced to be selling their Bitcoins fast in recent weeks in order to adapt to the new post-halving reward. Except for Cleanspark, most US Bitcoin mining companies are going through tough times in 2024.
Coinbase
The largest American crypto platform is having a very good year on the stock exchange, especially due to the popularity of the Bitcoin ETFs. Although it is still not trading at its 2021 launch price, it has made up a lot of lost ground since last year.
$BTC Big market sell from Coinbase in one clip, again, exactly like yesterday, after stock markets close. Be careful with longs. pic.twitter.com/k6kkZRewxx
— exitpump (@exitpumpBTC) July 3, 2024
CEO Brian Armstrong admitted that the last few weeks have been difficult as Bitcoin is undergoing a correction, but he remains very positive about the future of crypto. He hopes for a positive political climate for crypto (aka a victory for Donald Trump during the presidential elections) to turn the tide.
Summary
Microstrategy and Coinbase may seem cheap at the moment, but pay close attention to the price of Bitcoin as those shares are directly correlated with the price of the largest digital currency.
Bitcoin mining companies will likely need more time to adapt to Bitcoin’s post-halving realities.