The price of Bitcoin has tumbled over the past month, driven lower in recent days by inflation concerns and growing doubts about the resiliency of two large . A number of Bitcoin stocks — or companies that have business tied to the cryptocurrency — have followed.
Given the on-a-whim price swings in the crypto world, finding the best stocks out of that bunch can be difficult. And as some observers worry about bigger cracks in that ecosystem, no stock tied to crypto exactly qualifies as "best" at the moment.
But for now, based solely on IBD's chart analysis, the best crypto stocks and Bitcoin stocks to buy or watch include Coinbase (COIN), Capital (SI), Bitcoin Strategy (BITO), a Bitcoin futures ETF, (BITF) and Signature Bank (SBNY).
Bitcoin has been seen by some as a hedge against inflation. But it doesn't always act that way. The price of Bitcoin fell at the end of last year as more traditional dumped what they considered a volatile "risk asset" in a time of rising prices and economic uncertainty.
None of those stocks are currently in bases. Ratings for many are currently weak. Coinbase fell 26% earlier in May, following a dismal earnings report, but rebounded later.
Fluctuations In Bitcoin, Bitcoin Stocks
The price of Bitcoin currently stands at around $29,000. That price is well down from around $57,000 at the start of December and a record $68,990.90 in early November.
Bitcoin's gyrations have arrived as traders try to figure out where inflation and the economy are headed, as Russia's invasion of Ukraine tests the cryptocurrency's different investment narratives and the Federal Reserve raises its key interest rate to head off rising consumer prices.
"The institutional investor is paying close attention to Bitcoin as many who got in last year are now losing money on their investment," Edward Moya, senior market analyst at OANDA, said in emailed commentary recently.
Elsewhere, there have been issues with two , or a cryptocurrency whose value pegged to another asset, like a traditional currency. allows traders to more fluidly trade within the crypto ecosystem.
The widely used Tether fell below its $1 peg earlier this month. The drop followed a steeper one for the .
like Tether are purportedly backed by things like dollars or debt. But what assets back Tether, exactly, have been a big question in the past.
However, as Forbes explained, Terra is an algorithmic , with its value determined by its relationship with another digital asset called Luna. Terra's value is supposed to be held steady by recalibrations in the supplies of both those coins. And it is supposed to be worth $1 of Luna, the article said.