The main US stock index S&P 500 reached a new record, exceeding 5,000 points for the first time. What's going on with the shares of crypto companies? Why do these papers remain, as they say, on their own wave?
Stock market and cryptocurrency
While the US Federal Reserve is unsuccessfully fighting inflation, and spot ETFs for ether are awaiting approval from the Securities and Exchange Commission (SEC), there has been some lull in the crypto industry. But the stock market in America continues to reach new highs. Let's figure out what happens to the securities of organizations that hold, mine or arrange payments using Bitcoin.
Riot Blockchain (NASDAQ:RIOT)
The list of the largest companies by capitalization, one way or another connected with cryptocurrency, opens the list of miners from the state of Colorado – Riot Blockchain. Company capitalization as of February 25, 2024 – $3.06 billion. Stocks experienced an upward trend in February. By February 15, Riot Blockchain securities grew by more than 65%. But the week that began on February 16 turned out to be bullish. As a result, shares lost almost 10% in five days..
Source: tradingview.com
CleanSpark (NASDAQ:CLSK)
Miners from Nevada-headquartered company CleanSpark take ninth place. Capitalization – $3.25 billion. February 2024 turned out to be quite successful for CleanSpark shareholders: quotes more than doubled, from $8 to $16. But the last week was not so successful for the bulls: the price decreased by 8%.
Source: tradingview.com
Phoenix Group (PHX:ADX)
In eighth place is the mining company from the United Arab Emirates Phoniex Group with a capitalization of 12.58 AED (3.42 billion). This is a fairly young organization that began operations only in 2022. At the same time, the market coverage affects not only the Middle East, but also the USA, Canada and Europe. Phoniex Group shares are traded on the Abu Dhabi Stock Exchange. The growth of the US market had little effect on these securities. Last week they lost about 2.5% in price.
Source: tradingview.com
Marathon Digital Holdings (NASDAQ:MARA)
At the beginning of the list there are only mining companies. In seventh place is Marathon Digital Holdings from the US state of Nevada. The capitalization of this miner as of February 25, 2024 is $5.34 billion. The first half of February was extremely successful for shareholders: securities rose from $17.27 to $30.45. Profit taking began on February 16, as a result of which the shares corrected by 10.93%.
Source: tradingview.com
MicroStrategy (NASDAQ:MSTR)
In sixth place is the first non-mining company – MicroStrategy. In the crypto industry, this software developer is known for its large investments in Bitcoin. Capitalization is $11.66 billion. From January 23 to February 15, MicroStrategy shares increased more than 80%. But from February 16 to February 23 they decreased by 1.73%.
Source: tradingview.com
Grayscale Bitcoin Trust (NYSE : GBTC)
Fifth place is occupied by the spot bitcoin ETF – Grayscale Bitcoin Trust. Capitalization – $31.56 billion. Spot exchange-traded funds for Bitcoin in February 2024 recovered from the January decline. GBTC, for example, increased in value by more than 35%. But from February 16 to February 23, the week turned out to be low-volatile and ultimately bearish. Grayscale Bitcoin Trust shares lost about 1.5% during this period.
Source: tradingview.com
Coinbase (NASDAQ:COIN)
In fourth place on the list is the largest American crypto exchange Coinbase. Market capitalization – $40.21 billion. Last week, stock quotes decreased by almost 8%. However, the correction in the value of Coinbase securities is not surprising, since from February 7 to February 16 they grew by more than 65%. It is obvious that at some point there had to be profit-taking by investors. Actually, this is what happened:
Source: tradingview.com
Block (NYSE:SQ)
In third place in the ranking is a company specializing in payment services – Block (formerly Square). This is a holding company that includes companies specializing in cryptocurrency. Subsidiary Spiral is engaged in financing and “building open source projects that contribute to the development of the use of Bitcoin as an economic tool.”. Another subsidiary, TBD, is building a platform for developers to make access to Bitcoin easier and more convenient..
Unlike most of the stocks on our list, Block shares rose last week, adding 20%.. The dynamics were due to the fact that the report for the fourth quarter, released on Friday, February 23, turned out to be better than expected in terms of revenue.
Source: tradingview.com
PayPal (NASDAQ:PYPL)
PayPal takes second place in the ranking with a capitalization of $63.4 billion.. It does not engage in Bitcoin mining or crypto investments, but provides services for the acquisition and sale of BTC. In addition, it is a direct member of the S&P 500 index. However, PayPal is quite far from its all-time high. Last week, the dynamics of the shares turned out to be almost zero: the price changed only two cents, from $59.14 to $59.16.
Source: tradingview.com
Tesla (NASDAQ: TSLA)
A well-known automaker and part-time Bitcoin investor, Tesla, tops the ranking with a capitalization of $611.38 billion.. It is also included in the S&P 500 index. In mid-February, the company managed to stop the decline in the price of securities, which began in July 2023. In ten days, from February 5 to February 15, 2024, quotes increased by more than 15%. However, Tesla is down 4% over the past week..
Source: tradingview.com
Conclusion
So, shares of cryptocurrency companies did not show record growth, unlike the S&P 500 index. Even index members Tesla and PayPal fell slightly in price. It is obvious that the dependence of the value of securities of companies that are in one way or another connected with cryptocurrency on stock market fluctuations is lower than on fluctuations in the value of Bitcoin. Let us remind you that BTC lost about 2% last week. The only company that showed growth was Block. However, its rise is due to good financial statements, and not to correlation with the stock index.
This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.