This article discusses the current volatility in the crypto market, comparing the performance of BTC and related stocks with traditional assets. While BTC and some stocks like Coinbase show declines, gold rises as a preferred safe haven. Institutional engagement in crypto is influenced by upcoming legislative developments, and mining stocks demonstrate varying performance based on their focus areas with expectations of future market recovery.
The current financial landscape is marked by volatility, particularly within the cryptocurrency sector. As of early Wednesday, the S&P 500 has decreased nearly 9% year-to-date, and the Nasdaq Composite has seen even greater losses, down 14% in 2025. Bitcoin (BTC) is down approximately 10% within the same timeframe, hovering at around $83,700. In contrast, gold has seen a robust increase of 24%, reinforcing its appeal as a safe-haven asset that BTC is yet to establish.
Some specific crypto stocks have shown disparate performance; Strategy (formerly MicroStrategy) recently rebounded slightly, up 2% for the year. However, notable entities like Coinbase continue to struggle, with a decline of around 34% since the beginning of 2025. The market appears to be adjusting from post-election optimism to a more sober reality, with institutional engagement hinging on forthcoming legislation regarding market structure and stablecoins, as highlighted by Benchmark analyst Mark Palmer.
Palmer points out that the behaviour of stock prices for companies like Strategy and Coinbase is predominantly influenced by retail investors and hedge funds, contrasting with institutional investors who often retain their positions during downturns. Furthermore, cryptocurrency mining stocks exhibit a decoupling from BTC values, with leading miners such as Marathon Digital and Core Scientific recording year-to-date losses of 28% and 54%, respectively.
The market is distinguishing between two types of miners: those involved in AI data centre development and pure BTC miners. During downturns, focus often shifts to companies with essential offerings or attractive dividends, as noted by Palmer. Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF (BLOK), recognised the difficult Q1 for miners but expressed optimism regarding opportunities in AI cloud service providers, like CoreWeave, despite CleanSpark’s 25% decline this year.
Weiskopf reinforces that he does not view the AI and data centre trend as a speculative bubble, anticipating a market rebound towards riskier assets. Coinbase and Robinhood rank as BLOK’s second and third largest holdings, respectively, with Weiskopf praising their innovative approaches, especially in light of regulatory leniency from the SEC. Analysts from Cantor Fitzgerald also express a favourable outlook on Coinbase.
T. Rowe Price’s Dominic Rizzo identifies Coinbase as a critical player in the industry but maintains a less optimistic view of Strategy and mining firms. In contrast, MSTR remains the primary holding for BLOK, particularly after its recent BTC purchase, which has brought the company’s total count to 531,644 coins at an acquisition cost of approximately $67,556 each. Weiskopf argues that MSTR’s growth potential warrants a valuation premium over traditional metrics.
