COIN and HOOD fall to all-time lows Crypto-related stocks hit hard

Bad news continues to dominate the headlines in the crypto media, with the most notable news on May 12 being the unexpected collapse of the Terra ecosystem. In addition to the weakness in the stock market, publicly traded companies with exposure to blockchain startups and cryptocurrency mining have also experienced sharp declines in their stocks.

While it might be tempting to blame Terra’s implosion for the current pullback, the truth is that the price of Bitcoin mining stocks has largely mirrored Bitcoin’s performance since its November 2020 peak.

COIN and HOOD fall to all-time lows Crypto-related stocks hit hard

BTC /USDT vs. RIOT, HUT, MARA and BITF 1-day chart source: TradingView

Given the multiple headwinds of rising interest rates, inflation, and global conflict, the prices of these stocks may struggle to sustain as long as Bitcoin continues to fall.

Crypto Financial Services Also Facing a Correction

Not only Bitcoin mining stocks fell under the recent pressure, but all cryptocurrency-related companies felt the pinch in May.

Coinbase (COIN) shares hit an all-time low of $41.23 in early trading on May 12, following the release of forward-looking statements predicting continued declines in active users and trading volumes.


COIN price 4-hour chart source: TradingView

Shares of Robinhood also fell to an all-time low of $7.73 on May 12, a day after the company disclosed that its first-quarter cryptocurrency trading revenue fell 39% year over year, from $88 million in 2021 to $54 million in 2022. Dollar.

While Robinhood is more than just a cryptocurrency-only exchange, about 18% of its first-quarter net revenue came from cryptocurrency-related trading, a very significant number compared to other marketplaces supported by the platform .

General weakness in the tech sector

The decline in cryptocurrency-related stocks reflected a backdrop of general weakness in financial markets, especially the tech sector.

Years of optimism and quantitative easing have left the tech industry overvalued and volatile, and if earnings miss expectations, the industry will struggle.

The FAANGs, once stock market darlings, led losses and dragged the Nasdaq, which ended April with its worst monthly performance since the 2008 financial crisis.


1-day chart of the Nasdaq Composite Index Source: TradingView

The Nasdaq’s losses accelerated further in May, with the benchmark falling another 9.15% to its lowest level since November 2020.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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