Crypto Stocks Trade Like Nasdaq’s Siamese Twin, Coinbase Crashes

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Last Updated on 11 May 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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As markets ready themselves for a possible relief rally in the coming days (both in stocks and crypto) it’s time to take a look at all the damage that’s been done. Big tech and crypto now trade in tandem, and so crypto stocks are also suffering.

MicroStrategy, led by Michael Saylor, dropped some 60 per cent off its value this year alone, of which 25% was lost on Monday. Top mining stock Marathon Digital (which last year was a major winner) now slumped 17%; Coinbase is now trading at it’s lowest level since it was listed on the stock market a year ago. The stock has lost more than 70% of its value since late March.

Bitcoin changed hands for $31k and most of the MSM (mainstream media) are focused on the fact that this means it has lost 50% since it’s All Time High of $69,000.

Advertentie.

Cue stressed trader

As we’ve explained on these pages before, the MSM normally shows you pictures of stressed traders looking at screens with red figures at this point. Such was also the case at Business Insider which said there was simply ‘nowhere to hide’.

Alex Miller, chief executive officer of Hiro, explained to Reuters that:

Volatility in the market stems from speculation. And because bitcoin is so speculative, its price and the rest of the crypto market is dropping alongside the general markets.

Daniel Ives, strategist at Wedbush Securities, summarized it best when he said that:

This is a risk off across all asset classes including crypto.

Some investors are playing crypto like a hedge against inflation, but it’s trading like the Nasdaq’s Siamese twin.