Analyst says crypto stocks performance is proof we are in bear market

Crypto expert Caleb Franzen says that we’re presently successful a carnivore market. The grounds of that is the show of crypto-related equities, astir of which person mislaid fractional of their worth connected the year-to-date metric.

Crypto stocks decline

Topping the database is MicroStrategy. The concern quality and bundle institution has the biggest Bitcoin holdings among publically traded companies, holding implicit 120,000 units of the flagship asset. 

Quick thread connected crypto-related equities, whose terms enactment is intelligibly suggesting that we're successful a heavy carnivore market.

Men lie, women lie, numbers don't. Here's what I'm seeing:

— Caleb Franzen (@CalebFranzen) May 11, 2022

A look astatine its banal show implicit the past twelvemonth shows that it is down 83% from its all-time high. This twelvemonth alone, it has mislaid 58% of its value.

Silvergate Capital, a fiscal work and banking solutions supplier for crypto companies, has had a atrocious fiscal year. Its year-to-date metric is down by 42%, 64% beneath its ATH. 

The stocks of crypto mining companies are not spared the losses either. Marathon Digital Holdings has already mislaid 64% of its worth this year, 1 of the largest publically traded Bitcoin mining companies. It’s besides 86% distant from its ATH.

Coinbase, which precocious released its net study for the archetypal quarter, had a nett nonaccomplishment of $430 million. Unsurprisingly, the publically traded crypto speech is down by 83% from its all-time high, and its stocks look to beryllium the worst deed arsenic its worth has declined by implicit 70% successful this twelvemonth alone. 

Crypto plus absorption steadfast Galaxy Digital Holdings is besides having a atrocious year. It is 78% distant from its ATH and 55% down this year.

All of these reflector the wide show of the crypto manufacture successful the past fewer days, wherever the marketplace headdress of the manufacture dipped below the $1.5 trillion people for the archetypal successful the past year.

MicroStrategy remains bullish

With each of these equities trading astatine their lowest successful a year, determination are nary signs of things getting better. But immoderate look to beryllium prepared for this.

MicroStrategy has a $205M word indebtedness and needs to support $410M arsenic collateral. $MSTR has 115,109 BTC that it tin pledge. If the terms of #BTC falls beneath $3,562 the institution could station immoderate different collateral. See slides 11-12 successful Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx

— Michael Saylor⚡️ (@saylor) May 10, 2022

CEO of MicroStrategy, Michael Saylor, has stated that the institution doesn’t program to merchantability its Bitcoin. He said that Bitcoin would request to autumn beneath $3,562 earlier the institution needs to find different collateral for its $205 cardinal loans.