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Marathon Digital and Other Crypto Stocks Follow Bitcoin Lower

TheStreet logo TheStreet 5/28/2021 Dan Weil
Marathon Digital and Other Crypto Stocks Follow Bitcoin Lower © TheStreet Marathon Digital and Other Crypto Stocks Follow Bitcoin Lower

Cryptocurrency stocks such as Marathon Digital fell Friday, after Bitcoin, the largest digital currency, slid on negative comments from Bank of Japan Governor Haruhiko Kuroda.

"Most of the [Bitcoin] trading is speculative, and volatility is extraordinarily high," Kuroda told Bloomberg Thursday, joining the parade of global officials casting doubts on the currency. "It's barely used as a means of settlement."

Bitcoin slid 5% to $36,837 in recent trading, after hitting an almost four-month low of $35,178 earlier in the day.

As for crypto stocks, Marathon recently traded at $24.78, down 4.1%; Coinbase recently traded at $241.29, down 2.35%; MicroStrategy , which owns more than $2 billion in Bitcoin, traded at $471.73, down 4.5%; Bit Digital recently traded at $8.93, down 5.33%; and Ebang recently traded at $2.92, down 5.19%.

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Before the recent bout of volatility, "cryptocurrencies were on a tear despite no clear path to widespread adoption by consumers or businesses, and amid uncertainty over regulation," Argus Research said, according to Bloomberg.

"For crypto to make it on the radar for most investment managers' asset allocation models, we expect it needs to at least triple in value, to approximately $5 trillion," Argus added. "By then, maybe there will be more uses for and regulations to define the asset, and more fundamentals to support valuation."

Bitcoin's rollercoaster trading has undercut any "use case" among corporate leaders, Peter Tchir noted on RealMoneyPro Tuesday, when he reviewed the linkage between cryptocurrencies and stocks.

Meanwhile, Ark Investment Management star Cathie Wood said she blames Tesla TSLA Chief Executive Elon Musk and the "ESG [environmental, social governance investment] movement" for Bitcoin's recent stumble.

This article was originally published by TheStreet.

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