Crypto analyst Caleb Franzen says that we’re currently in a bear market. The evidence of that is the performance of crypto-related equities, most of which have lost half of their value on the year-to-date metric.
Crypto stocks decline
Quick thread on crypto-related equities, whose price action is clearly suggesting that we're in a deep bear market.
Men lie, women lie, numbers don't. Here's what I'm seeing:
— Caleb Franzen (@CalebFranzen) May 11, 2022
A look at its stock performance over the past year shows that it is down 83% from its all-time high. This year alone, it has lost 58% of its value.
Silvergate Capital, a financial service and banking solutions provider for crypto companies, has had a bad fiscal year. Its year-to-date metric is down by 42%, 64% below its ATH.
The stocks of crypto mining companies are not spared the losses either. Marathon Digital Holdings has already lost 64% of its value this year, one of the largest publicly traded Bitcoin mining companies. It’s also 86% away from its ATH.
Coinbase, which recently released its earnings report for the first quarter, had a net loss of $430 million. Unsurprisingly, the publicly traded crypto exchange is down by 83% from its all-time high, and its stocks appear to be the worst hit as its value has declined by over 70% in this year alone.
Crypto asset management firm Galaxy Digital Holdings is also having a bad year. It is 78% away from its ATH and 55% down this year.
All of these mirror the overall performance of the crypto industry in the last few days, where the market cap of the industry dipped below the $1.5 trillion mark for the first in the past year.
MicroStrategy remains bullish
With all of these equities trading at their lowest in a year, there are no signs of things getting better. But some appear to be prepared for this.
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. #HODLhttps://t.co/9WHsIB6Usx
— Michael Saylor (@saylor) May 10, 2022
CEO of MicroStrategy, Michael Saylor, has stated that the company doesn’t plan to sell its Bitcoin. He said that Bitcoin would need to fall below $3,562 before the company needs to find other collateral for its $205 million loans.
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