Crypto stocks plunge to record lows, GBTC off 50% despite Bitcoin rally

by James · December 14, 2022

Several crypto-related stocks have seen their values plummet to new record lows despite Bitcoin’s (BTC) value rallying over the past 30 days.

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GBTC discount rises to over 50%

Grayscale’s Bitcoin Trust (GBTC) traded at a record discount rate of 50% on December 13 after the US SEC defended its refusal to approve the trust’s conversion to an exchange-traded fund (ETF).

According to Google Finance data, the share price has risen 3.70% in the past 24 hours to $8.40 at press time. It is down 6.25% in the last 30 days and 41.5% in 6 months. Compared to the year-to-date calculation, the value has decreased by 75%.

Speculation surrounding the financial health of its parent company, Digital Currency Group, has grown following recent events in the crypto space.

GBTC’s value has plunged 87% from its all-time high.

Coinbase shares fall to record lows.

Shares of the US-based crypto exchange Coinbase have fallen to a record low since its debut in April 2021.

According to Yahoo Finance, COIN fell below $40 on December 11 and has been trading below this mark ever since. In the last 24 hours, the value has fallen by 9.18% to $38.69 and over 20% in the last 30 days. In 2022 alone, the share’s value has fallen by more than 80%.

At its peak, Coinbase shares were trading as high as $342.

Coin-based storage — Source: Tradingview

Despite the poor price performance, Cathie Wood’s Ark Invest has continued to buy shares in the crypto exchange. The investment company reportedly bought over 75,000 COIN shares for over $3 million.

Bitcoin Miners Stock Down.

Bitcoin miners with a market cap of more than $1 billion during the 2021 bull run have seen their stocks drop by an average of more than 80%, according to data shared by Anthony Power, a Bitcoin mining analyst with Compass Mining.

According to the data, Argo Blockchain is the worst hit, as its shares have fallen 97.1% year-to-date. In addition, a 10 Dec CryptoSlate the report revealed that the BTC mining company may have accidentally revealed its plans to file for bankruptcy.

CryptoSlate research has also revealed that miners are having trouble due to BTC’s low price. As a result, they have been aggressively selling their BTCs and their holdings have plunged to a one-year low.

A separate report showed that miners such as Hut8, Riot and Marathon increased their BTC holdings in November while Argo, Bit Digital, Bitfarms and Cleanspark’s BTC reserves shrank.

BTC has risen 9% in the last 30 days

While Bitcoin-related stocks have struggled over the past year, the flagship digital asset has outperformed them despite weakening overall market conditions.

In accordance CryptoSlate data, BTC is up 2.2% in the last 24 hours to $17,833. Its value has risen by over 4% in the last seven days and around 9% in the last 30 days.

Meanwhile, BTC has fallen around 60%, around 74% below its all-time high.