According to Bloomberg News, shares related to the cryptocurrency companies are doing their rounds with the digital tokens to register highs as FOMO has made investors downplay some of the high-profile misses during this earning season.
The largest digital asset in the United States, Coinbase Global Inc unnerved investors briefly this week when revenues in the 3rd quarter shrunk more than what Wall Street had anticipated amidst a volatile environment in the price of digital tokens and Bitcoin.
Marathon Digital Holdings Inc, a crypto miner closed about 15% lower on Wednesday after it reported revenue that did not meet the expectations of the analysts.
Although the shares of Marathon and Coinbase dropped initially due to the results, the temptation for all things crypto continue to give a lift to the broader spectrum of the sector and resulted in rebounding of stocks over the last two days.
An ETF or exchange-traded fund that keeps a tab on more than 50 crypto-related firms which also includes Coinbase and Riot Blockchain Inc, showed an advancement of 1.8% in the current week simultaneously setting up a record that extended gains since September end to 36%.
Ether and Bitcoin make up 65% of the crypto market’s anticipated $2.7 trillion market value, reaching an all-time high. According to Bloomberg News, Natalia Radyushkin, who is the chief financial officer of Unbanked.com, which is a crypto platform, said that there is existing short-term volatility in the crypto market so the same is being reflected in the stock as well. However, the CFO also said that the market is bullish and will play out in the 4th quarter when the fireworks will usually take place.
Bakkt Holdings Inc is the company of late-faced disappointment as it announced its results Friday for the first time since it debuted publicly in October. The shares dropped by as much as 9.8%.
The investors that put their money in crypto stocks might be in for a volatile market in the weeks to come with Michael Novogratz, the crypto billionaire’s Galaxy Digital Holdings Ltd sets its report Monday followed by Riot Blockchain Inc. releasing their report the week after.
However, still, the rally has paused the bulls that are waiting for the prices to cool off before they put the money to work.
