Stock market share value fell along with bitcoin price

The price of the shares of companies that operate in the cryptocurrency market and blockchain platforms fell drastically this May 19, amid the strong correction experienced by both bitcoin (BTC) and ether (ETH), the cryptocurrency Ethereum.

Among the stocks with losses is COIN, from Coinbase, which showed a fall of more than 5.9% . The value of the shares closed in the order of $ 225, although it was trading as low as $ 213 at the beginning of the day. This is a decrease of more than 34% since its debut on the Wall Street list, which occurred in mid-April and reported by CriptoNoticias.

COIN was among the stocks with the biggest declines on May 19. Source: TradingView.

For its part, the shares of MicroStrategy, a company that has bought more than 91,000 bitcoins to add them to its treasury, were quoted with a 6, 7% less, reaching a minimum of $ 415 per share.

MicroStrategy shares started the day at over $ 490 and fell to $ 415. Source: TradingView.

Something similar happened with Galaxy Digital, an investment manager focused on cryptocurrencies, whose shares fell 6.3%. Its CEO, billionaire Mike Novogratz, told CNBC that the “liquidation event” that led to the BTC crash showed signs of a kind of “market capitulation” .

Also Marathon Digital and Riot Blockchain, two other companies with great exposure to cryptocurrencies, fell 5.5% in the last hours of May 19. This, while the shares of Square, the payment company of Twitter CEO Jack Dorsey, decreased by 1.5% . This last company stands out for having invested a large amount of money in crypto assets -after MicroStrategy- buying 220 million dollars in bitcoin.

The decline included payment giants, such as Mastercard and Visa, which in The last few months they have been leaning heavily towards cryptocurrencies offering some forms of payment and trading with crypto assets. Shares of Masterdcard lost 0.5%, and those of Visa 0.3%.

Joining this list is one of the largest banks in the United States, JPMorgan Chase. The shares registered a loss of 0.7% . This bank is characterized by championing the adoption of blockchain technology applied to the custody of cryptocurrencies and interbank transactions.

Tesla also closed in loss after announcing at the beginning of the year that it had invested 1,500 million dollars in bitcoin. The shares of the company, which just eliminated payments with bitcoin, lost 2.4% of their value .

Stock market in general decline

The fall of the actions mentioned above, occurs in the framework of a general decline in the main stock indices . So far there is no agreement on the causes. Several theories are speculated, among them it is believed that inflation is scaring investors, while they continue to wait for the Federal Reserve (Fed) to reduce the size of its bond purchase program.

The decline in the stock market has been occurring for a few days and was accentuated this Wednesday in the framework of a Fed meeting. It is observed that both the index The S&P 500, like the Dow Jones Industrial Average and the Nasdaq Tech, tumbled. Banks are among the biggest losers. This is the case of Goldman Sachs, which fell almost 2%; and Wells Fargo which fell by 1.4%.

All this, while bitcoin closes its worst day since the coronavirus crash of March 12 2020, known as “Black Thursday.” The cryptocurrency market downturn is associated with Elon Musk’s decision to eliminate BTC payments at Tesla.

However, is also related to the recent government measure of China , to prohibit financial and payment institutions from providing services with cryptocurrencies.

On this, Neil Wilson, from Markets.com, told the BBC News that, although China has been putting pressure on the cryptocurrency market for some time, the new move marks an intensification . “Other countries could follow the same path as central banks move towards creating their own digital currencies,” he concluded.

At the end of this writing, the price of bitcoin is slightly displayed in up, trading at USD 38,348 according to the CriptoNoticias price calculator.

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