, 2022-12-31 02:24:00,
Remember when inflation was basically transitory and the US Federal Reserve kept its interest rates near zero for several quarters at a stretch? What relatively calm times those were. And what glorious times they were for crypto and blockchain related stocks.
But now, as governments around the world have embraced aggressive rate hikes, the crypto market has come crashing down. Bitcoin (BTC-USD) itself is 76% down from its all-time highs.
BKCH ETF Composition
BKCH’s top five holdings include Block Inc. (SQ), Coinbase Global (COIN), Riot Blockchain (RIOT), Applied Digital Corp. (APLD), and Marathon Digital (MARA). Overall, these top 5 holdings make up 51.2% of the overall exposure. This indicates some moderately high concentration.
Here’s a discussion of some of the fundamental drivers of BKCH:
The Bitcoin Indicator
Though the cryptocurrency and blockchain industries have many moving parts and fundamental drivers, Bitcoin (BTC-USD) is indisputably the single most important factor. If Bitcoin smiles, the market bursts out laughing, and if Bitcoin frowns, agony envelopes the market.
That said, Bitcoin currently trades at painful lows, dragging the entire market into a crypto winter and BKCH to all-time lows.
My outlook on Bitcoin has been bearish since November 2021. I have publicly…
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