Crypto stocks are inevitably tied to the success or lack of it in the broader crypto ecosystem. Essentially, it’s a basic equation: crypto bull market = crypto stocks go up, crypto bear market… you get the drift.
According to CoinGecko, the total cryptocurrency market cap reached its highest point in November 2021, when it stood at around $3 trillion, before dropping to around $1 trillion throughout 2022 and 2023 as the market entered a bearish phase and the Fed started hiking interest rates (over 500 basis points). However, with the onset of a new bull market last year and the SEC’s approval of several spot Bitcoin ETFs in January, the investor base expanded, and cryptocurrency prices have been on the up again.
Bank of America analyst Mark McLaughlin sees the current market as more stable than previous “boom periods,” despite its volatility, because there’s a larger pool of investors, including institutions,…
