(Feb 16): China’s blockchain stocks are missing out on the cryptocurrency mania that has pushed their global peers to record highs.
A Bloomberg-curated basket of seven key Chinese A-share stocks with ties to the blockchain technology underpinning cryptocurrencies including Shenzhen Forms Syntron Information Co., Shenzhen Ysstech Info-Tech Co. and Brilliance Technology Co. has fallen about 16% so far this year, according to data compiled by Bloomberg. That compares with a 36% rise in an Elwood Asset Management index tracking global blockchain-linked shares.
“Not every company will stand out in the blockchain sector,” said Reo Liao, a market analyst with IG Australia. “The recent surge in Bitcoin price may suggest that digital currency and digital-asset trading platform concepts will be the ones that attract all investors. That’s why we see all related stocks climb these days.”
Bitcoin s volatile week rattles faith in crypto resurgence
Olivia Raimonde, Bloomberg News VIDEO SIGN OUT
The sharp selloff in Bitcoin this week is stoking fresh questions about the sustainability of the cryptocurrency boom.
Prices for the digital asset have tumbled about 12 per cent this week, marking the steepest decline since September. Bitcoin was higher on Friday, pushed back above US$32,000 after a series of wild swings the past two days. Commentators have cautioned that a sustained drop below US$30,000 could presage further losses.
âBeing Bitcoin, a 10 per cent range intraday is a mere flesh wound to the digital asset, in a world where tradable versus investible is seriously blurred,â said Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte. The digital coin could âeasily be US$35,000 again tomorrow or could drop through US$30,000 and test notional support at US$27,000.â
Bitcoin’s volatile week rattles faith in Crypto resurgence
Prices for the digital asset have tumbled about 12% this week, marking the steepest decline since September. Photo: istock
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. Updated: 22 Jan 2021, 09:41 PM IST Bloomberg
The sharp selloff in Bitcoin this week is stoking fresh questions about the sustainability of the cryptocurrency boom.
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The sharp selloff in Bitcoin this week is stoking fresh questions about the sustainability of the cryptocurrency boom.
Prices for the digital asset have tumbled about 12% this week, marking the steepest decline since September. Bitcoin was higher on Friday, pushed back above $32,000 after a series of wild swings the past two days. Commentators have cautioned that a sustained drop below $30,000 could presage further losses.