Bad news continues to dominate crypto media headlines and today's juiciest tidbit was the unexpected collapse of the Terra ecosystem. In addition to the weakness seen in equities, listed companies with exposure to blockchain startups and cryptocurrency mining have also declined sharply.
Bitcoin mining stocks continue bleeding...Mining investors probably wish they had simply bought bitcoin instead at the beginning of 2022, as most bitcoin mining stocks have underperformed bitcoin by a wide margin. pic.twitter.com/anSoUEoUJ1
While it may be easy to blame for the current pullback solely on Terra's implosion, the truth is that the price of Bitcoin mining stocks has largely mirrored the performance of BTC since reaching a peak in November 2020.
It's likely that the price of these stocks will struggle as long as Bitcoin continues to bleed lower in the face of multiple headwinds, including rising interest rates, inflation and global conflict.
It’s not just Bitcoin mining stocks that have fallen under the pressure of late as all manner of companies that have any kind of association with cryptocurrencies have been feeling the heat in May.
Following the release of forward-looking statements that project a continued decline in active users and trading volume, the price of Coinbase (COIN) stock hit an all-time low of $41.23 in the early trading hours on May 12.
Robinhood also saw its stock price drop to a new all-time low of $7.73 on May 12, one day after the firm revealed that its crypto transaction revenue fell 39% year-over-year in Q1 from $88 million in 2021 to $54 million in 2022.
While Robinhood is not a crypto-only exchange, roughly 18% of its Q1 net revenue came from crypto-related transactions, which is significant when
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