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Analyst says crypto stocks performance is proof we are in bear market

12 May, 20223 min readAnalytics
Analyst says crypto stocks performance is proof we are in bear market

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

Topping the list is MicroStrategy. The business intelligence and software company has the biggest Bitcoin holdings among publicly traded companies, holding over 120,000 units of the flagship asset.

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. #HODL— 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.

Oluwapelumi is a believer in the transformative power Bitcoin and the blockchain industry holds.


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