As you all blog readers might know, all through 2021 I was extremely active in covering multiple cryptocurrencies and crypto stocks from US and Canada. But things have drastically changed ever since. First of all, the crypto stocks are all underperforming. Bitcoin and Ethereum have lost immense value in terms of dollars. The market is no longer valuing these (crypto-related) stocks like how things were.
I personally hold no investments in MARA, Bitfarms, HIVE, RIOT, HUT8, etc. (none of the crypto stocks)
Seriously for all this, I dint feel like writing in this space (Crypto) coz the stocks are going nowhere but on a serious downtrend ever since. I know a couple of people who had invested heavily during the crypto boom and couldn’t get out on time to save the capital plus gains. Luckily I made little gains when I exited and did not bother to invest ever since.
So, fundamentally what has gone wrong with the Crypto Stocks?
First, before moving forward, let’s quickly take a look at where Bitcoin or BTC, and Ethereum stand at the moment.
As you can see, over the past year, BTC price has been on a downtrend continuously while showing no signs of recovery anytime soon.
Now, let us take a quick look at the ETH price for reference.
Again, the same story here as well, Ethereum price has been falling constantly over the past 1 year.
The reason I am concentrating on the price movement for the past 1 year or so is pretty simple, all these crypto companies have made huge moves in acquiring new hardware and projecting massive upcoming quarter results and EPS; also BTC was in a bull run with price prediction upto $100K before 2023. Also, there were a bunch of YouTubers projecting BTC price to go up to $1M too (LOL). I am not sure where these channels stand now as I am not very actively tracking them.
One more thing, if you might be following, back then, we had too many blue tick Twitter users with polls, graphs, and charts proving to be authentic in terms of BTC and ETH price projections. Look where we are now. Over the past year, it’s only been interest rate hikes, inflation, and whatnot. In fact, the best of the stocks, i.e. even the likes of quality blue chips haven’t given us any gains and moving either downwards or sideways.
What If you are still invested in these crypto stocks?
First of all sorry for the losses. I hear you, I know the pain os losing money. It’s hard-earned money after all, and especially in the current inflationary scenario, I feel for you. But we are left with little to no hopes of recovery here.
My sincere take on this is to exit the investments you have made with losses. There is little to no hope of your money recovering keeping in mind the short – longer term in this space. Please do not track this market any longer, unless you are extremely passionate/bullish about BTC and ETH price movements and have high hopes for a price recovery. My best wishes to you in this regards. But if I were you, I would exit right now, if you haven’t yet, and move on elsewhere.
Again, If you look at the current stock price of MARA, it stands at $6.19 USD.
While the stock price of RIOT currently stands at $3.98 USD per share.
Can you seriously believe the price fall here? Especially the huge dip. I still remember all the news and stock price surge last year, the NASDAQ listing stories, the yahoo forums buzzing with price predictions, the calculations, and whatnot. Especially the likes of MARA and RIOT with huge miner purchases and buzzing with crazy stock price movements in a day.
And especially with the competition between MARA and RIOT in purchasing the latest miners to mine more BTC, with all this, it’s really sad to see the price falling in both BTC and stocks; so much in just a year’s time.
As I said I am not very actively tracking the Q results and reports of any of the crypto companies anymore. I am just out of this space completely. I did get a lot of emails from readers of this blog asking for an update on Bitfarms, Hut 8, etc, but sorry folks I am out here. Its just time waste and nothing more.
Final Words
If you are overly exposed to cryptocurrencies or crypto stocks, please take a look again and balance your portfolio better. Holding quality blue chips is good any day. Please do quality research before making any investments. Always expose/diversify your investments to minimize the risk by holding a lesser percentage of high-risk stocks.
As I said, I have exited all these high-risk and crypto stocks from my portfolios. I don’t even hold any cryptos too right now.
At the moment and going forward, and as I am getting older by the day, I am going back to the basics and planning to invest only in quality blue chip stocks such as Apple’s and Google.
Please let me know your thoughts and comments. Stay happy and safe. After all, who doesn’t like a new beginning when things are shady, have positive hopes, you’ll eventually end up being better than yesterday at least.