Bitcoin's 60% YTD Correction Looks Bad, But Many Stocks Have Fallen Even More

Vintage investors often say that the volatility of BTC, ETH and altcoin is too high to warrant a wise investment, but many large companies have seen even bigger declines in their stock prices in 2022.
Market news
The agonizing 60% and 66% respective price declines of Bitcoin (BTC) and Ether (ETH) are drawing a lot of flak from crypto critics and maybe it's deserved, but there is also many actions with similar, if not worse, performance.

The high volatility seen in crypto prices is partly due to the insolvency of major centralized yield and lending platforms, the bankruptcy of Three Arrows Capital, and a handful of exchanges and mining pools facing to liquidity problems.

For cryptocurrencies, 2022 was certainly not a good year, and even Tesla sold 75% of its bitcoin holdings in the second quarter at a loss. The nearly trillion-dollar company still holds a position of $218 million, but the news certainly didn't help investors perceive Bitcoin's corporate adoption.

Cryptocurrencies are not the only assets affected by the withdrawal of stimulus measures by central banks and the increase in interest rates. A handful of multi-billion dollar companies around the world have also suffered, with losses exceeding 85% in 2022 alone.
Cash-hungry companies saw their stock prices fall sharply
Unlike cryptocurrencies, businesses, especially publicly traded ones, depend on funding, whether the money is used for mergers and acquisitions or day-to-day operations. This is why interest rates set by central banks have a huge impact on highly indebted sectors such as energy, auto sales and technology.

Saipem (SPM.MI), an Italian provider of oil and gas exploration and engineering services for offshore and onshore projects, saw its shares drop 99.4% in 2022. The company recorded heavy losses amounting to more than a third of its equity in 2021 and it desperately needed cash to stay afloat as capital costs rose as interest rates rose.

Uniper (UN01.DE), an energ...

Crypto Sep 22, 2022 0 209 Add to Reading List

Bitcoin's 60% YTD Correction Looks Bad, But Many Stocks Have Fallen Even More

Vintage investors often say that the volatility of BTC, ETH and altcoin is too high to warrant a wise investment, but many large companies have seen even bigger declines in their stock prices in 2022.

Bitcoin's 60% year-to-date correction looks bad, but many stocks have dropped by even more

Market news

The agonizing 60% and 66% respective price declines of Bitcoin (BTC) and Ether (ETH) are drawing a lot of flak from crypto critics and maybe it's deserved, but there is also many actions with similar, if not worse, performance.

The high volatility seen in crypto prices is partly due to the insolvency of major centralized yield and lending platforms, the bankruptcy of Three Arrows Capital, and a handful of exchanges and mining pools facing to liquidity problems.

For cryptocurrencies, 2022 was certainly not a good year, and even Tesla sold 75% of its bitcoin holdings in the second quarter at a loss. The nearly trillion-dollar company still holds a position of $218 million, but the news certainly didn't help investors perceive Bitcoin's corporate adoption.

Cryptocurrencies are not the only assets affected by the withdrawal of stimulus measures by central banks and the increase in interest rates. A handful of multi-billion dollar companies around the world have also suffered, with losses exceeding 85% in 2022 alone.

Cash-hungry companies saw their stock prices fall sharply

Unlike cryptocurrencies, businesses, especially publicly traded ones, depend on funding, whether the money is used for mergers and acquisitions or day-to-day operations. This is why interest rates set by central banks have a huge impact on highly indebted sectors such as energy, auto sales and technology.

Saipem (SPM.MI), an Italian provider of oil and gas exploration and engineering services for offshore and onshore projects, saw its shares drop 99.4% in 2022. The company recorded heavy losses amounting to more than a third of its equity in 2021 and it desperately needed cash to stay afloat as capital costs rose as interest rates rose.

Uniper (UN01.DE), an energ...