Bitcoin Sets Its Sights beyond $40,000, Boosting XNET stock higher
As has often been the case for much of the past couple of months, when bitcoin rises, a handful of stocks also perform well, including XNET stock.
On Wednesday evening, the combined capitalization of the entire cryptocurrency market surpassed $1 trillion for the first time, according to CoinDesk.
Cryptocurrency stocks continue to see outsize trading volume, leading to high volatility, as bitcoin and other alt-coins keep pushing to new highs.
Investors should keep in mind that many cryptocurrency stocks are penny stocks and incredibly easy for traders to manipulate.
Xunlei is surging by a ludicrous amount today and there's no fundamental reason to explain the move. But the stock's trading volume is almost 44 million, according to Yahoo! Finance, rivaling that of some of the largest publicly traded companies.
Xunlei's move today is reminiscent of the surge Bit Digital had during the past week. The stock more than doubled in just a couple of days but is losing steam now that the pump is over.
Herein lies the problem with stocks surging on trading volume that's out of sync with business fundamentals: There's no way to tell when the music is going to end. That's true of Xunlei and Bit Digital stocks, but also others like Marathon, Riot Blockchain, and Canaan. These three now have market caps over $1 billion each, trading with price-to-sales ratios in the hundreds.
As has often been the case for much of the past couple of months, when bitcoin rises, a handful of stocks also perform well, including XNET stock.
On Wednesday evening, the combined capitalization of the entire cryptocurrency market surpassed $1 trillion for the first time, according to CoinDesk.
Cryptocurrency stocks continue to see outsize trading volume, leading to high volatility, as bitcoin and other alt-coins keep pushing to new highs.
Investors should keep in mind that many cryptocurrency stocks are penny stocks and incredibly easy for traders to manipulate.
Xunlei is surging by a ludicrous amount today and there's no fundamental reason to explain the move. But the stock's trading volume is almost 44 million, according to Yahoo! Finance, rivaling that of some of the largest publicly traded companies.
Xunlei's move today is reminiscent of the surge Bit Digital had during the past week. The stock more than doubled in just a couple of days but is losing steam now that the pump is over.
Herein lies the problem with stocks surging on trading volume that's out of sync with business fundamentals: There's no way to tell when the music is going to end. That's true of Xunlei and Bit Digital stocks, but also others like Marathon, Riot Blockchain, and Canaan. These three now have market caps over $1 billion each, trading with price-to-sales ratios in the hundreds.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.