Just when investors were beginning to think crypto prices had reached their floor, the market plunged off another cliff. Top projects continue to dump significant chunks of their value, and a massive selloff is ensuing. But the crypto crash isn’t just impacting coins and tokens. There are a host of crypto stocks affected by the turmoil too.
At its height in November, the market capitalization of the crypto industry was jaw-dropping. Bitcoin (BTC-USD) soared to an all-time high of nearly $70,000, crypto niches like the metaverse and play-to-earn projects were at peak interest, and the overall value of the market was nearing $3 trillion. The period looked to cap off a historic year for the asset class.
However, by late December, it looked like the market would actually start 2022 in a corrective period. Of course, we know now that it did. Bitcoin ultimately plummeted below $30,000. The coin has been fighting ever since to reclaim its all-time high. But as outside factors — the Russian invasion of Ukraine, the Federal Reserve’s interest rate hikes, and rampant inflation — take hold, investors have been fleeing the speculative crypto market in favor of safer investments.
Recent weeks signaled a slowing of the market’s volatility. Indeed, recently Bitcoin retook the $30,000 mark and actually held above it, and some altcoin plays have been reinvigorating faith in the market with their own price pops.
Unfortunately, though, this sense of security is a fleeting one. Beginning this past weekend, investors are seeing the biggest period of losses in over a year. Bitcoin and Ethereum (ETH-USD) are sinking 17% and 19%, respectively. The former is trading at its lowest price since 2020. The market at large is also dipping below $1 trillion for the first time since early 2021.
Which Crypto Stocks Are Suffering the Most After the Crypto Crash?
While Bitcoin and Ethereum are inflicting pain on altcoins, the crypto crash is extending even beyond the asset class. Crypto stocks are taking a beating as well.
Michael Saylor’s MicroStrategy (NASDAQ:MSTR) is easily the company worst hit by the crypto crash. The company owns over 129,000 BTC, making it one of the biggest whales in the world. Unfortunately, this massive reserve of assets on its balance sheet makes the stock almost as volatile as a cryptocurrency itself. MSTR stock has lost over $1 billion in value in response to this week’s crash. Tesla (NYSE:TSLA) is also trading down thanks to its 40,000 BTC stash. The electric automaker has lost $500 million after the crash.
A grip of other crypto stocks more closely related to the industry are seeing price gouges themselves. Consider Robinhood (NASDAQ:HOOD), which is slowly becoming a more crypto-centric Wall Street player. HOOD is losing nearly 8% in response to the turmoil. Exchange player Coinbase (NASDAQ:COIN) is suffering a 12% loss. The small army of crypto-mining companies, including Marathon Digital (NASDAQ:MARA), Hut8 (NASDAQ:HUT), Riot Blockchain (NASDAQ:RIOT) and Greenidge Generation (NASDAQ:GREE), are losing anywhere from 10% to nearly 20%.
But even more loosely connected stocks to the crypto industry are feeling the pain. PayPal (NASDAQ:PYPL), for example, is falling 7% on the news. Semiconductor companies Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) are both losing around 8% also. All in all, the events of recent days are showing just how much of an effect cryptocurrency markets have on Wall Street, whether investors like it or not.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.