• MicroStrategy lost 28% of its crypto stocks in May.
• JPMorgan is confident of the cryptocurrencies rise, especially Bitcoin.
This has not been the best month for crypto stocks. According to Saxo Bank, the most popular cryptocurrencies like Bitcoin and Ethereum 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 Bitcoin 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 Bitcoin lost value
Although the crypto market was not favorable in May, Saxo Bank evaded the loss of shares largely. Bitcoin 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, Bitcoin 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 Bitcoin. Saxo Bank tries to take advantage of the rise of crypto stocks to increase its popularity, investments, and confidence. With the 280% rise that Bitcoin 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 Bitcoin, it would rise again. Investors hope that Bitcoin 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.