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Crypto stocks perform poorly in May

2 min read

TL;DR Breakdown

• MicroStrategy lost 28% of its crypto stocks in May.
• JPMorgan is confident of the cryptocurrencies rise, especially BTC.

This has not been the best month for crypto stocks. According to Saxo Bank, the most popular cryptocurrencies like BTC and ETH have had the worst market performance in May.

The Danish bank’s blockchain and cryptocurrency-themed share package lost 18.1% of its value in May. This crash caused great pain for traders attracted by the bullish rally that BTC had in early 2021.

The second weakest stocks in the market were next-generation drugs. These shareholders lost over 6.3%, while e-commerce lost 3.7% of its shares. This happened while investors were exiting the technology market due to its downtrend.

It was a difficult month for crypto stocks. Microstrategy, the technology company with millions of shares in BTC, had its value depreciate by 28% in May. Additionally, Riot Blockchain, which is dedicated to mining, had a value loss of 35%.

Crypto stocks that support BTC lost value

crypto stocks

Although the crypto market was not favorable in May, Saxo Bank evaded the loss of shares largely. BTC plunged 35% less than 30 days after Elon Musk announced that he stopped accepting the cryptocurrency for purchases. News from China on restrictions on using cryptocurrencies was also not favorable for the decentralized market.

Last Tuesday, BTC was below 40% in losses, trading at $36,860. This figure is staggering compared to its all-time high of $65,000 in April.

Saxo Bank projects

Danish banks like Saxo are offering their clients a trading system for cryptocurrencies, especially BTC. Saxo Bank tries to take advantage of the rise of crypto stocks to increase its popularity, investments, and confidence. With the 280% rise that BTC showed last year, it seemed like a good idea, but now everything has changed.

JPMorgan, the most significant financial company in the United States, said it would create products linked to its crypto stocks by March. However, with the recent fall in cryptocurrencies, companies have limited or even forgotten these projects.

Something that motivates companies with crypto stocks is that regardless of the drop in value of BTC, it would rise again. Investors hope that BTC will hit its all-time high before the end of 2021, and everything will be reset. For now, the cryptocurrency does not go beyond the range between $30,000 and $40,000 dollars for each token.

Although May was a lousy month for cryptocurrencies, June could hopefully bring a upswing in the market.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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