Amid the recent correction in the price of major cryptocurrencies, shares of various big blockchain and bitcoin proxy stocks also fell sharply.

In brief:
Amid the recent correction in the price of major cryptocurrencies, shares of various big blockchain and bitcoin proxy stocks also fell sharply.

During the recent correction in the cryptocurrency market, Bitcoin fell below $10,000 for the first time since November. Amidst a massive sell off that wiped billions off of the global cryptocurrency market, the stocks of companies with bitcoin or blockchain exposure also took a massive beating.

lockchain and cryptocurrencies have been considered by corporate America as a way to resonate with investors. However, this approach proved profitable during the favorable period and has flopped when cryptocurrency prices have experienced sharp corrections.

The slump in crypto stocks comes alongside massive declines in the world’s biggest cryptocurrencies. Recently, the price of bitcoin declined by 20%, with the price recovering a little to a 16% drop most recently, while Ripple lost one-third of its market cap. Meanwhile, Litecoin had also tumbled more than 13% and Dash had plummeted nearly 17%.

The declines cannot be tied to one particular reason. Chinese regulators are gearing up to crack down on the country’s bitcoin mining operations and place a wider ban on the trading of cryptocurrencies. Also, the US equities that investors earlier celebrated for their blockchain presence are now being punished, as a more highly regulated cryptocurrency market is expected to take shape.

The Bitcoin Investment Trust (GBTC), which operates as a bitcoin holding fund and once regularly traded at a 100% premium to its bitcoin-per-share value, suffered a 10% drop. Since 2018, the investment has dropped 20% of its value, from a high of 2,261 to today’s levels of under 1,780. Bloomberg reported that with reducing the gap between the GBTC NAV and the bitcoin price, the sophisticated traders could sit on profit.

The stock of Eastman Kodak, which revealed its plans to issue its own cryptocurrency via an upcoming ICO, had soared by some 200%. But recently, it dropped by nearly 8%, which may represent a buying opportunity for bullish blockchain investors.

Chip stocks such as AMD and Nvidia having legitimate exposure to the blockchain, have risen depicting the capability of these companies to trade on their fundamentals.

Though all major cryptocurrencies, including bitcoin, are passing through a little uncertain phase, it is noteworthy that the 30% fall in the price of bitcoin over a three-day period in December and similar declines in November didn’t continue for long.

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