Bitcoin Has Another Volatile Week. Are These Crypto Stocks

Bitcoin prices saw considerable volatility over the last week, falling from levels of almost $53,000 on Monday, September 6, to levels of under $45,000 currently, marking a decline of almost 15%. In fact, the cryptocurrency fell by almost 10% within an hour of trading last Tuesday. Other cryptocurrencies such as Ethereum and Dogecoin also saw meaningful declines. The sell-off was surprising as it came just as El Salvador adopted Bitcoin as legal tender, apparently a positive development for the broader cryptocurrency space. However, one possible explanation for the decline could be a broader sell-off across risky asset classes over the last week, with the S&P 500 down by almost 2%.
Investors who want to play the long-term upside in cryptocurrency adoption, without exposing themselves to this sort of volatility in crypto pricing, should take a look at our indicative theme on Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain. The theme has gained roughly 25% year-to-date, compared to the S&P 500 which is up by about 19% over the same period. Within our theme, graphics processor major Nvidia has fared the best, with its stock rising by 72% year-to-date. On the other hand, exchange major CME Group has been the worst performer in our theme, rising by just about 4% over the same period.
[8/23/2021] With Bitcoin Back At $50K, Consider These Crypto Stocks
Bitcoin prices have been on a wild ride this year. While prices for the bellwether cryptocurrency more than doubled to levels of around $65,000 between early January and mid-April 2021, driven by higher institutional interest, prices fell back to levels of just under $30,000 as of mid-July, due to China’s crackdown on Bitcoin trading and the U.S. Federal Reserve’s increasingly hawkish stance. However, the currency has recovered swiftly from the recent lows, rising by about 65% since July 20th, and trades at about $50,000 currently. The recent recovery is apparently driven by factors including short-covering, as well as signs that the U.S. SEC was increasingly open to allowing Bitcoin exchange-traded funds.
Investors who want to play the long-term gains in cryptos, without exposing themselves to the volatility and boom and bust cycles in cryptocurrency pricing, should take a look at our indicative theme on Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain. The theme has gained roughly 24% year-to-date, compared to the S&P 500 which is up by about 19% over the same period. Within our theme, graphics processor major Nvidia has fared the best, with its stock rising by 59% year-to-date, driven by strong demand for its chips as well as its recent stock split. On the other side, exchange major CME Group has been the worst performer in our theme, rising by just about 9% over the same period.
[7/1/2021] Bitcoin Prices Crash
Bitcoin prices have crashed from levels of around $62,000 in mid-April to just about $34,000 as of Wednesday. The crypto bear market appears to be driven by a host of factors, including China’s crackdown on Bitcoin trading and mining and Tesla’s unexpected reversal of its decision on accepting the digital currency as payment for its cars. Moreover, the U.S. Federal Reserve has turned increasingly hawkish following its mid-June meeting indicating that it could start hiking interest rates from 2023, rather than 2024. This is also likely putting pressure on non-productive assets such as cryptocurrency.
Now, although the market sentiment for cryptos, in general, is clearly bearish, cryptocurrencies have the potential to be one of the most disruptive technologies of our time. Moreover, with increasing institutional interest, they appear to be here to stay as an asset class. Investors who want to play the long-term gains in cryptos, without exposing themselves to the volatility and boom and bust cycles in cryptocurrency pricing, should take a look at our indicative theme on Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain. The theme has gained roughly 22% year-to-date, compared to the Nasdaq-100, which has returned about 15% over the same period. Within our theme, graphics processor major Nvidia has fared the best, with its stock rising by 53% year-to-date, driven by strong demand for its chips as well as its planned stock split. On the other side, processor major Advanced Micro Devices has been the worst performer, with its stock up by just about 2% this year.
[4/5/2021] Crypto Stocks To Watch
Cryptocurrency prices have surged this year. Crypto bellwether Bitcoin has almost doubled year-to-date to levels of about $60k as of the end of last week, as more institutional investors warm up to the currency, with companies such as Tesla also indicating that they will accept bitcoi