(Bloomberg) – Stocks in other companies associated with Coinbase Global Inc. (Coin) and Cryptocurrencies have been hit this quarter as they focus on digital assets as concerns about the US economy grows.
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Coinbase is set for its worst performance since FTX collapsed near the end of 2022, over 30% quarter. Almost all major crypto link stocks have plummeted from miners such as Conglomerate Galaxy Digital Holdings Ltd. (GLXY.TO) to Miners such as Riot Platforms Inc. (Roiot) and Core Science Platforms Inc. (Riot) and Core Science Platforms Inc. (Riot) to Miners such as Conglomerate Galaxy Digital Holdings Ltd. (Glxy.to) to CORPTO). (BTC-USD) Falled over 10% and lost over 45% of its value.
As US President Donald Trump escalated the world trade war, fears about what it means for the world’s biggest economy have sparked unrest across the market. After slates of economic data deepened concerns on Friday, the S&P 500 Index (^GSPC) is heading towards its worst quarter since mid-2022 in itself. And traders have escaped particularly quickly from dangerous bets, including digital assets.
“Many people in the community understand that this isn’t driven by a fundamental reason,” said Owen Lau, an analyst at Oppenheimer. “This is driven primarily by macro reasons for those worried about tariffs, potential trade wars and recessions coming.”
Crypto stocks are more risky and volatile than Bitcoin itself, due to investments in companies that pose an additional threat of bankruptcy, Lau said. If the economic warning signs are flashing, that means they tend to sell faster.
In the case of Coinbase, the exchange draws revenues from Bitcoin as well as alternative tokens like ether, which sold faster, analysts noted.
While some people in the industry consider Bitcoin to be “digital gold,” the precious metals themselves were a completely different story. That quarter’s returns were the highest since 1986, driven to new highs. According to Chris Weston, Pepperstone’s research director, gold has emerged with a “limited conviction” as a major hedge against risk, along with a “limited belief” that it was able to effectively play its role until recently.
And the state of Crypto Markets is far from the beginning of the year when optimism began fever after Trump’s election. Bitcoin prices reached a high of over $109,000 on the inauguration day in January.
The story continues