Some cryptocurrency investors believe that stocks may be a relatively low risk redemption opportunity.
After a long 15 months, Bitcoin prices have returned to more than $11,000. “Interestingly”, many of the listed companies in the Asian stock market that have entered the cryptocurrency business have also recovered:
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- In Tokyo, GMO Internet Inc. shares rose 7% (the highest increase since October last year), Metaps Inc. rose 11%, and Remixpoint and Ceres rose 6.2% and 4.4%, respectively;
- In Seoul, Vidente Co. shares rose 5.4% and Woori Technology Investment Co. rose 4.6%.
LightStream research analyst Supun Walpola said:
"The bitcoin recovery should be a clear reason behind the recovery of the stock price of listed companies in the cryptocurrency business in Asian stock markets, especially those stocks related to cryptocurrencies have begun to rise again in this bitcoin/cryptocurrency bull market, some investors I am eager to explore the cryptocurrency market, but at the same time I want to avoid being affected by cryptocurrency price fluctuations."
However, Supun Walpola also pointed out that because the cryptocurrency listed companies have different business, the stock prices of these companies have changed differently. For example, the stocks of big companies such as GMO have risen more than small companies such as Remixpoint. Supun Walpola further explained:
"From historical data, when the market price of cryptocurrency rises, the stock price of related listed companies will also rise, but the price increase of cryptocurrency tends to be larger. In fact, when this happens, cryptocurrency and Stock markets tend to adjust quickly."
GMO Internet's previous main business was to provide network-related services, but also invested in a number of listed subsidiaries, after which they began to focus on the bitcoin mining business and transferred the mining server to a new cheaper power. location. So far this year, the company's share price has risen by 34%.
Supun Walpola finally reminded:
“Historical data also shows that stocks that accompany rising cryptocurrency prices can only succeed in a short period of time. Although some cryptocurrency investors believe stocks may be a relatively low-risk redemption opportunity, when cryptocurrency markets fluctuate This investment strategy usually has problems."
Original author: Kurt Schussler
Odaily Planet Daily Translator: Moni
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