Crypto-Related Stocks Indicate the Crypto Market Is Bearish

The crypto market is caught up in a bearish trend, according to analyst and economist Caleb Franzen. He said this in a tweetstorm earlier today, citing the poor performance of crypto-related equities.

Franzen highlighted the performance of leading crypto-connected stocks, starting with MicroStrategy’s MSTR. According to him, MSTR is down 83% from its all-time high (ATH) and has lost 58% of its value year-to-date. Franzen also shone a light on Silvergate Capital’s stock, SI, which is down 64% from its ATH. SI is also down 42% year-to-date.

MARA, the stock of Marathon Digital Holdings, one of the largest publicly traded Bitcoin mining companies, is also performing poorly. According to Franzen, it is down 84% from its ATH. Additionally, MARA has lost 64% of its value since the start of the year.

COIN, the stock of leading crypto exchange Coinbase, has plunged 83% from its ATH and is down 73% year-to-date. Galaxy Digital’s BRPHF is also trending downward, having lost 55% year-to-date. BRPHF is also down 78% from its ATH.

The crypto market is also depicting a similar trend as the above stocks. At the time of writing, Bitcoin (BTC), the largest crypto by capitalisation, is trading at $30,913.13. This price represents a 2.62% loss in the day and a 20.27% drop over the past seven days. Notably, BTC is down 54.73% from its ATH of $68,789.63.

Bearish trend elicits different reactions among crypto adopters

As a result of the current bearish trend, crypto enthusiasts have taken different approaches to deal with the sharp price drops. For instance, El Salvador bought the dip, adding 500 BTC to its balance sheet.

MicroStrategy’s CEO, Michael Saylor, maintained his ever-bullish attitude despite BTC’s poor performance. He took to Twitter yesterday to assure MicroStrategy’s stakeholders that the company will not face liquidation even if the price of the flagship cryptocurrency keeps dropping.

His tweet read,

MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODL

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However, not all crypto adopters share in El Salvador’s and Saylor’s bullish outlook. According to Glassnode, BTC’s exchange inflow volume hit a three-month high earlier this week, indicating that BTC HODLers are cashing in their holdings. Additionally, the company found that the number of BTC whales has dropped to levels last seen earlier this year.

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