Bitcoin’ price struggling to rise and stabilize above the $7000 mark is having a negative impact on the broader cryptocurrency industry. Stocks with ties to the most valuable cryptocurrency have seen their sentiments turn sour, after a blockbuster run last year.
Bitcoin Services, Inc. (OTCMKTS:BTSC) and BTCS Inc. (OTCMKTS:BTCS) have not been lucky, having shed a substantial amount of market share as sentiments in the space turned sour.
Since the start of the year, BTCS has lost more than 70% in market value and is currently trading near all-time lows. Bitcoin Services. Bitcoin Services Inc., on the other hand, has shed more than 80% of market value.
The fact that cryptocurrencies have become increasingly correlated with the stock markets has not helped Bitcoin Services and BTCS sentiments in the markets. Fears about a potential global trade war between the U.S and China has gone a long way in spooking the markets as investors continue to evaluate assets in their portfolio.
Bitcoin being an extremely volatile asset has paid the price on growing fears in the market that has forced investors to shift attention to safe havens as protection concerns take hold.
After plummeting to the $0.04 handle, BTCS has shown signs of bouncing up on rallying to the $0.08 handle before coming under pressure and tanking to the $0.06 handle. The stock is currently trading at a critical support level, below which it remains susceptible to further declines. On the upside, the stock could make a run for the $0.12 handle on rising and closing above the $0.09 mark.
Just like BTCS, Bitcoin Service Inc. is also showing signs of climbing high after bouncing back from all-time lows. The stock is currently trading at the $0.06 handle and needs to close above the $0.10 handle, to re-affirm the emerging uptrend after recent sell-off.
BTCS and Bitcoin Services Business Description
Bitcoin Services Inc. is a cryptocurrency focused company engaged in the business of bitcoin mining and other cryptocurrencies. The company also offers a bitcoin escrow service that acts as a neutral third party between buyers and sellers when doing business online.
BTCS, on the other hand, is focused on digital assets and blockchain technologies. The company is planning to create a portfolio of digital assets made up of bitcoin and other protocol tokens in a bid to provide investors with a diversified pure play exposure to bitcoin and blockchain industry.
A lack of updates from BTCS and Bitcoin Service has been the biggest undoing, going as far as derailing investors’ confidence in the two stocks.
The last piece of information about BTCS operations came out in January, highlighting the company’s achievements in 2017. The company says it entered 2017 with $45.3 million in total liabilities and $98,000 in assets. Thanks to capital raises and debt restructuring, the company was able to trim toxic debt, significantly improving its financial position
BTCS entered 2018 with no debt and cash of approximately $303,000. Its digital assets at the start of the year were valued at $621,000. Having failed to close a proposed merger deal with an Australian blockchain company, the company says it is evaluating other potential merger targets.
“While it is still possible we may complete the merger with the Australian company, we are actively focused on other opportunities and in preliminary discussions with other potential targets that may drive shareholder value. We cannot assure you we will complete any acquisition. “BTSC in a statement.
With regards to Bitcoin Services, the most recent piece of information touches on its financial results for the fiscal year ended December 31, 2017. The report shows the company had assets worth $518,764 as of the end of 2017, up from $129,107 as of 2016.
Revenue for the full year totaled $471,696 nearly triple revenues of $166,346, reported the previous year. However, operating income loss ballooned to (-$10.6) million in 2017 from $67,140 as of the end of 2016.
Bitcoin Service consequently posted a net loss of (-10.8) million in 2017, compared to a net loss of $67,140 reported in 2016.
What Next For Bitcoin Services and BTCS Inc.
Despite showing, signs of bottoming out after coming under immense selling pressure in recent months, things are not looking good for Bitcoin Services and BTCS. Investor sentiments about investments in the cryptocurrency are near all-time lows, a situation made worse by uncertainty in the broader stock market.
What the future holds for cryptocurrencies has been brought to question in recent months, amidst increased regulatory pressure from various jurisdictions. Given that the two stocks trade in tandem with Bitcoin, it may be wise to wait until the cryptocurrency rises above the key psychological level, before considering investments in BTCS and Bitcoin Services.
Bitcoin price needs to rise and stabilize above the $7000 mark to affirm suggestions that the rout in the cryptocurrency space is finally over. Until then, it may be wise to take a back seat given the risks and uncertainty in the cryptocurrency space.
Disclosure: We have no position in BTSC or BTCS and have not been compensated for this article.