Crypto stocks are experiencing a steep decline, reflecting a broader downturn in Bitcoin and altcoins.
Coinbase, the largest cryptocurrency exchange in the U.S., has seen its share price plummet from nearly $350 in November to $190, resulting in a loss of market capitalization from $86 billion to $48 billion—a staggering $38 billion decline.
Michael Saylor’s strategy has led to significant losses, with the company’s market cap dropping from a peak of $106 billion last year to $79 billion today. Formerly known as MicroStrategy, the company continues to accumulate Bitcoin, currently holding 499,226 Bitcoins on its balance sheet.
Robinhood’s stock has fallen from $66.85 earlier this year to $45, erasing $18 billion in market value. While Robinhood has established itself in the retail trading space, it aims to enhance its presence in the crypto sector with its upcoming acquisition of BitStamp later this year.
Bitcoin (BTC) mining stocks are also suffering, as the declining price of BTC adversely affects profit margins. Mara Holdings, formerly Marathon Digital, has incurred a loss of over $4.6 billion in valuation. Other mining companies, including Riot Blockchain, Core Scientific, CleanSpark, Hut 8 Mining, and TeraWulf, have also experienced substantial declines.
Bitcoin and Altcoin Prices Plummet
The decrease in crypto stocks correlates with the persistent downturn in Bitcoin and other altcoins. Recent data shows that the total market cap of cryptocurrencies has dropped from over $3.7 trillion in 2024 to $2.7 trillion currently.
Bitcoin has fallen from $109,300 in January to $85,000 at last check, with most altcoins faring even worse. For instance, Solana meme coins have lost over $18 billion in value as their combined market cap continues to shrink.
Despite reassurances from the government to support the crypto sector, including plans for a Strategic Bitcoin Reserve, the market remains volatile.
The Securities and Exchange Commission has introduced some favorable policies and concluded several lawsuits involving major companies, including Coinbase and Ripple Labs.
Whether these crypto stocks will recover is uncertain, as analysts present varying forecasts for the industry. Some predict a resurgence in Bitcoin’s price, with estimates of reaching $500,000 over time, while others, like Ki Young Ju of CryptoQuant, suggest that the current crypto bull run has concluded, pointing to broadly bearish indicators.
