18 Jan The bitcoin plunge is crushing crypto-craze stocks
Easy come, easy go. The stocks that rode bitcoin’s rise higher are now plunging as the digital currency falters.
The price of bitcoin is down nearly 50 percent in the past month and down more than 20 percent in a 24-hour period to $9,600, according to exchange Coinbase. Bitcoin is still up more than 900 percent in the past 12 months.
Several of these crypto-related stocks had stunning moves higher in recent weeks.
Longfin surged 1,342 percent in two days in December to a market value of more than $3 billion after buying a cryptocurrency company with no revenue. The rally spurred the company’s CEO to say “this market cap is not justified.”
And shares of the company formerly named Long Island Iced Tea rose 183 percent on Dec. 21 after it announced it was changing its name to “Long Blockchain.” The shares plunged this week even after the company said Wednesday that it intends to merge with Stater Blockchain, a company providing “blockchain technology solutions in financial markets.”
Bitcoin Investment Trust, a publicly traded vehicle that invests in bitcoin, is also down 14 percent Wednesday.