Cryptocurrency-Based Stocks Fall Amid Market Downturn
Posted: 23 Jan 2018
Date Written: January 17, 2018
The once celebrated stocks of companies with bitcoin or blockchain exposure are falling alongside the top coins today. Corporate America has been looking to the blockchain and cryptocurrencies as a way to resonate with investors, a strategy that while profitable during the best of blockchain times has proven to backfire when cryptocurrency prices suffer declines.
Meanwhile, the bitcoin price suffered declines as steep as 20%, with the price recovering slightly to a 16% drop most recently. Ripple, meanwhile, lost as much as one-third of its market cap. The declines appear to be tied to chatter of tighter cryptocurrency controls in China that would place a wider ban on the trading of bitcoin and altcoins. US equities that investors previously celebrated for their blockchain presence are now being punished, as a more highly regulated cryptocurrency market threatens to take shape.
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