The fallout from this month’s violent crypto market meltdown appears to have flowed into the stock markets, with publicly listed firms with exposure to crypto assets seeing significant losses during May. The month saw Bitcoin (BTC) and other leading cryptocurrencies crash by at least 50%, with BTC plummeting from roughly $60,000 on May 10 to bounce off support at $30,000 last week. The largest publicly traded firm by number of BTC held in its reserves, MicroStrategy saw its share price slump from $657 at the end of April to roughly $450 as of May 21 — a 31.5% drawdown in …
Wall Street megabank Goldman Sachs has initiated coverage of United States cryptocurrency exchange Coinbase with a buy rating following a major crash on crypto markets. In a note to clients on Monday, Goldman Sachs analyst Will Nance stated that Coinbase stock is the best way for investors to gain exposure to the crypto industry, CNBC reported. According to the report, shares of crypto companies like Coinbase should be regarded as a hedge against the parabolic volatility of cryptocurrencies like Bitcoin (BTC). “While we believe the core business today offers an attractive growth profile with the potential to drive new high …
Strategists at JPMorgan Chase, one of the largest investment banks in the United States, believe that Tesla’s $1.5 billion Bitcoin (BTC) purchase will not necessarily trigger a ton of similar investments. A group of JPMorgan strategists led by Nikolaos Panigirtzoglou reportedly argued that Bitcoin’s highly volatile nature could keep mainstream corporate treasurers away from Bitcoin. “The main issue with the idea that mainstream corporate treasurers will follow the example of Tesla is the volatility of Bitcoin,” the strategists wrote in a note to investors, Bloomberg reported Tuesday. According to JPMorgan, even a small portion of Bitcoin in corporate treasures’ portfolios …
After rising above $66,000 today and reaching a market capitalization of more than $1.2 trillion, Bitcoin has surpassed the total market cap of both car manufacturer Tesla and social media giant Facebook. According to data from AssetDash, Bitcoin (BTC) is now the 6th most valuable asset by market capitalization among major companies, behind Microsoft, Apple, Google's parent company Alphabet, Saudi Aramco, and Amazon. The crypto asset passed Tesla’s and Facebook’s market caps of $1.19 trillion and $975 billion, respectively, as its price hovers close to $66,000 and within striking distance of its all-time high of $67,000. The recent price rise …
Former stockbroker Jordan Belfort, known colloquially as the “Wolf of Wall Street” has likened low market cap crypto assets to penny stocks due to their extreme price volatility. Penny stocks refer to highly speculative shares priced under $1 from small and unknown companies. Generally they either fetch massive returns for investors or crash and burn dramatically. Belfort's rise to prominence in the 90s and eventual run in with the Securities and Exchange Commision (SEC), was in part, due to brokering deals for these stocks. During an interview with Yahoo Finance on Aug. 27, Belfort noted that these types of investments …