Cryptocurrency Stocks Struggle Amid S&P 500 Record Highs

The primary American stock market index, S&P 500, has reached a new milestone, surpassing the 5,000 point mark for the first time. However, amidst this surge in traditional markets, stocks related to cryptocurrencies are experiencing a different trend.

As the US Federal Reserve struggles to combat inflation and Ethereum spot ETFs await approval from the Securities and Exchange Commission (SEC), the crypto industry is experiencing a period of relative calm. Meanwhile, the stock market in America continues to hit new highs. Let's delve into what's happening with the stocks of companies involved in holding, mining, or facilitating payments with Bitcoin.

Riot Blockchain, based in Colorado, is among the largest companies by market capitalization associated with cryptocurrencies. As of February 25, 2024, the company's market capitalization stands at $3.06 billion. While there was an upward trend in February, with stocks surging by over 65% by February 15, the following week saw a bearish turn, resulting in nearly a 10% loss in five days.

CleanSpark, headquartered in Nevada, holds the ninth position in terms of market capitalization among mining companies. With a market capitalization of $3.25 billion, February 2024 proved to be favorable for CleanSpark shareholders, with stock prices more than doubling from $8 to $16. However, the last week saw a downturn, with prices dropping by 8%.

Phoenix Group, a mining company from the United Arab Emirates, holds the eighth position with a market capitalization of 12.58 AED ($3.42 billion). Despite its presence in markets beyond the Middle East, including the US, Canada, and Europe, the recent growth in the American market had little impact on Phoenix Group stocks. Last week, they experienced a price drop of about 2.5%.

Leading the list of mining companies is Marathon Digital Holdings from Nevada, ranking seventh. With a market capitalization of $5.34 billion as of February 25, 2024, the first half of February was highly successful for shareholders, witnessing a surge from $17.27 to $30.45. However, profit-taking since February 16 led to a correction of 10.93%.

MicroStrategy, a software developer known for its significant investments in Bitcoin, ranks sixth. With a market capitalization of $11.66 billion, the company's stocks surged by over 80% from January 23 to February 15. However, they saw a decline of 1.73% from February 16 to 23.

These fluctuations in the cryptocurrency stocks highlight the complexity of the market, where traditional indices like the S&P 500 may not accurately reflect the performance of digital asset-related companies.