2 best cryptocurrency stocks to buy amid the Bitcoin unraveling
- Cryptocurrency prices have erased over $1.3 trillion in value lately.
- That drop has affected some companies with exposure to Bitcoin.
- We explain why Bakkt and MicroStrategy are good buys.
The unraveling of cryptocurrency prices has had a negative impact on several American stocks that have an exposure to the industry. Bitcoin has declined by over 45% from its highest level in 2021 while cryptocurrencies have declined by over $1.3 trillion. Still, the stock sell-off means that some opportunities have been created. So, let us look at some of the top cryptocurrency stocks to buy during the sell-off.
The Bakkt (NASDAQ: BKKT) stock price has had a difficult time as a publicly-traded company. The stock is trading at $4.16, meaning that it has fallen by over 90% from the all-time high. This drop brings its total market capitalization to $1.1 billion. It has crashed to its lowest level on record.
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For starters, Bakkt was once one of the leading names in the blockchain industry. The company started by offering crypto custody services to institutional investors. Recently, however, it has changed its business strategy and is offering additional services like crypto rewards and wallet services.
Bakkt went public in 2021 and its stock soared to an all-time high of $51 after the company announced a partnership with Mastercard, the giant payment processing company.
However, the stock has now crashed and is currently trading at about $9. The drop is mostly because of two main factors. First, analysts expect that the company will struggle to find growth in a competitive environment it is currently at. Second, the ongoing sell-off of cryptocurrencies has played a role in the sell-off.
Still, there is a likelihood that the Bakkt stock price will rebound if cryptocurrencies, especially Bitcoin rebounds.
MicroStrategy (NYSE: MSTR) is a leading technology company that offers business intelligence services to leading companies. In the past few years, the company has embraced Bitcoin, and is currently one of the biggest investors in the coin.
The MicroStrategy stock price has crashed by about 72% from its highest level last year, bringing its total market capitalization to about $3.9 billion.
The main reason why the MicroSrategy stock price has crashed is the weak performance of Bitcoin prices.
On Friday, the stock crashed by over 17% as BTC and other cryptocurrency prices crashed. It also fell after the SEC clarified about how the company should report its Bitcoin profits and losses.
Still, MicroStrategy stands a good chance to recover if the Bitcoin price bounces back. There is a likelihood that the price will bounce back later this year.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Capital.com, simple, easy to use and regulated. Register here >
*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.