PiCK

Despite U.S. Stock Gains... Crypto-Related Stocks Fall in Unison amid 'DAT Bubble' Concerns

Doohyun Hwang

Summary

It reported that despite major U.S. stock markets closing higher, crypto-related stocks were unable to avoid weakness.
It said that growing bubble concerns over companies adopting Digital Asset Financial Strategy (DAT) led to investor sentiment weakening across related stocks.
It reported that representative DAT companies and major listed crypto firms all showed declines, and major coins such as Bitcoin, Ethereum, and XRP also fell.

Although major U.S. stock markets closed higher on the 5th (local time), crypto (cryptocurrency)-related stocks were unable to avoid weakness.

That day the Dow Jones Industrial Average rose 0.22%, the S&P 500 rose 0.19%, and the Nasdaq Composite rose 0.31% to close.

However, the recovery in risk-asset appetite did not spread to the crypto sector. Recently, controversy has erupted inside and outside the industry over companies that adopted the Digital Asset Financial Strategy (DAT), and related stocks overall took a direct hit from the contraction of investor sentiment. Earlier, CoinShares warned that "the enterprise value of companies that recently adopted DAT has become excessively high compared to actual fundamentals," raising the possibility of a 'DAT bubble.'

In fact, Bitmine, regarded as a representative DAT company, plunged 6.22% that day, and SharpLink Gaming also fell 3.94%. Stablecoin issuer Circle (–2.1%), Coinbase (–1.58%) and other major listed crypto firms also recorded weakness across the board, reflecting market caution.

Crypto market conditions also remained mixed. Bitcoin (BTC), which had regained the $93,000 level, was pushed back below $90,000, widening its losses. Ethereum (ETH) and XRP each fell more than 4%.

BTC

ETH

XRP