In April, shares of cryptocurrency-related companies, including miners, fell significantly harder than Bitcoin, according to a ForkLog report.
The price of digital gold fell 17.3% during the period, Ethereum dropped 16.9%. Total market capitalization declined 18%.
Against this backdrop, Coinbase, the largest US cryptocurrency exchange, fell by more than 40%, while Bakkt declined 38.1%.
Losses among mining-industry companies were even higher: Riot Blockchain’s shares fell 50.8%, Marathon Digital’s price dropped 45.3%. The mining-hardware maker Canaan recorded a 35% decline in its stock price.
In April, the stock market broadly resumed its downward trend. The Nasdaq Composite retraced from its mid-month high by 22.2%, while the S&P 500 declined 12.78%.
During the period, Bitcoin’s correlation with the US stock market strengthened. The statistical correlation with the S&P 500 stood at 0.52, up from 0.48 in March. For Ethereum, the figure reached 0.57.
Former BitMEX CEO and co-founder Arthur Hayes predicted that, due to the correlation with traditional markets, Bitcoin and Ethereum would test the $30,000 and $2,500 levels respectively by the end of Q2 2022 test the $30,000 and $2,500 levels respectively.
On May 9, the price of digital gold fell below the $33,500 level. Shares of cryptocurrency-related companies also continued to decline.
Sponsor of the “Bitcoin Industry in Numbers” column — the global blockchain ecosystem Binance.
Analysts at Arcane Research proposed an industry metric for comparing public mining companies. The most overvalued were Marathon and Riot shares.