Sector sell-off worse than meme crash and SPAC slump

The recovery in the stocks of businesses connected to the realm of digital assets last week hasn’t given cryptocurrency equity investors any solace.

This is because the sector this year is behind practically all other riskier areas of the financial markets by a significant margin.

The limited impact strategy is back to haunt investors

As the second quarter comes to a close, equities that are tied to cryptocurrencies are joining digital tokens as one of the riskiest asset classes in the world.

According to Steve Sosnick, chief strategist of Interactive Brokers LLC, “crypto stocks are effectively a leveraged gamble on one of the riskiest assets.”

Wall Street analysts are still fairly upbeat about the vast majority of stocks that are exposed to cryptocurrencies despite the risks and the sharp decline in share prices.

According to statistics from Bloomberg, there are currently 20 purchase suggestions for Coinbase, which has lost more than $60 billion since reaching an all-time high in November. Early in January, when the stock was worth more than quadruple what it is now, this figure was the same.