Bitcoin prices are down about 56% since January, while crypto stocks like MicroStrategy, Riot Blockchain, Coinbase and Hut8 Mining are down up to 74%.
The orange line in the graph below shows Bitcoin’s rate of decline in 2022 as a percentage of its January price. Other lines represent major Bitcoin stocks, none of which have had a good year in terms of stock prices.
Coinbase reported a loss of $1.1 billion in Q2 2022, dropping assets held on the exchange to just $96 million.Recently the stock Downgraded Selling by Wells Fargo as “increasing competition and macro pressures hurt stocks.” Coinbase, which uses the ticker COIN, went public on April 21 at $310 per share. As of Oct. 5, he’s down 76% and trading at just $72, but since January he’s down 71%.
Michael Saylor’s MicroStrategy is the best performing crypto stock. After starting the year at $576, the stock has fallen 58% to $243 this year. The stock hit a yearly low in July, trading at just $142. It rose 150% to $361 in August. However, it has since fallen 30% despite the announcement of more Bitcoin purchases.
Formerly Square, Block is down 62% year-to-date at $164. Now, insiders such as Alyssa Henry are selling shares, which are trading at just $62. According to the SEC filingHenry sold 7% of his holdings for $1,715,491.
Crypto Stocks Underperform
Some investors may view cryptocurrency stocks as a safer alternative to buying cryptocurrencies directly while being exposed to Bitcoin prices. Alternatively, persons using financial instruments that do not allow the purchase of cryptocurrencies rely on such stocks for their cryptocurrency exposure.
Spot Bitcoin ETFs have been repeatedly rejected in the US over the years, but some have started popping up elsewhere, such as Canada and Europe.
The stock market is struggling while the US dollar is close to all-time highs. The S&P 500 hit an all-time high on his January 4th, but fell about 21%, wiping out all gains gained since November 2020. Cryptocurrency stocks have lost three times as much as the S&P 500 on average through 2022.