With Bitcoin At $51,000, Check Out These Crypto Stocks

With Bitcoin At $51,000, Check Out These Crypto Stocks

Cryptocurrencies have seen a lot of volatility in recent weeks. Bitcoin prices have plummeted by almost 25% from their November highs to levels of about $51, 000 currently, although they have recovered a bit from recent lows of about $46, 000. The decline comes as the U. S. Federal Reserve turns increasingly hawkish, planning for as many as three interest rate hikes over the next year, likely making investors reduce exposure to non-productive assets such as cryptocurrency. Moreover, the recent uncertainty following the surge in Covid-19 cases worldwide, amid the spread of the more infectious omicron coronavirus variant, is also adding to the volatility. Our theme of Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies, enables investors to gain exposure to the cryptocurrency value chain without betting on the volatile cryptocurrencies themselves. The theme remains up by about 27% year-to-date, compared to the S&P 500 which is up by about 25% over the same period. The theme has also been much less volatile over time, with average drawdowns over the last five years standing at just about -9%. Within our theme, semiconductor major Advanced Micro Devices has been the strongest performer, with its stock rising by about 57% year-to-date.