The digital currency ecosystem has recorded so many mishaps this year that it is now practically impossible for investors not to maintain a skeptical view of stocks across the board.
The top crypto stocks are buckling under the weight of bear pressure today as the trend left a somewhat opposite reaction on the price of digital currencies. The shares of American cryptocurrency trading platform Coinbase Global Inc (NASDAQ: COIN) closed Tuesday’s trading session down 7.80% to $42.41. In today’s Pre-Market, the shares have slipped by another 1.39% to $41.82.
The crypto financial services behemoth, Silvergate Capital Corp (NYSE: SI) also closed Tuesday on a bearish note with a 4.70% slump to $23.10. Unlike Coinbase stock, Silvergate is seeing marginal growth in the Pre-Market today after rising by 0.22% to $23.15.
Crypto stocks were known to share a very steep correlation with the actual digital currencies themselves. This way, we can expect the stock to fall if there is a correspondingly massive drop in the prices of these volatile assets. However, the current drop in crypto stocks is not significantly affecting the prices of digital currencies across the board.
Bitcoin (BTC) is up by 0.24% over the past 24 hours at a trading price of $16,820.26 while Ethereum (ETH) has pared a little of its gains and is down 1.1% to $1,229.64. As with both top coins, Binance Coin (BNB), Solana (SOL), XRP, Cardano (ADA), and Avalanche (AVAX) all ended yesterday’s trading sessions on positive notes, however, almost all have recorded a tiny slip away from the positive trend and momentum they started the week with.
The negative sentiments that are evident in the market at this time are also evident in major stock indices. The Dow Jones Industrial Average (INDEXDJX: .DJI) is down by 1.03% to 33,596.34, the Nasdaq Composite (INDEXNASDAQ: .IXIC) closed the last trading session at a 2% deficit to 11,014.89. The broader market index, the S&P 500 Index (INDEXSP: .INX) has also lost 1.44% of its value over the past 24 hours at the close of Tuesday’s session to 3,941.26.
Bearish Sentiment on Crypto Stocks
The digital currency ecosystem has recorded so many mishaps this year that it is now practically impossible for investors not to maintain a skeptical view of stocks across the board.
Besides the Coinbase and Silvergate Capital stocks that were profiled above, other stocks with direct or indirect connections to crypto are also seeing a very bearish day. MicroStrategy Incorporated (NASDAQ: MSTR) closed marginally lower with a less than 1% slip to close Tuesday’s session at $195.52.
Crypto miners including Riot Blockchain Inc (NASDAQ: RIOT) have had it rough this year with soaring energy prices that have made them relatively sensitive to a broad-based change in market sentiment. Riot stock is down 1.83% in the pre-market after closing Tuesday’s session down 6.01% to $4.38.
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