Crypto-Linked Stocks Slide Amid Market Divergence

Shares of companies tied to digital assets are underperforming broader risk markets as Federal Reserve rate cut expectations buoy traditional equities and corporate debt. ALT5 Sigma Corp., Kindly MD, and Metaplanet have seen precipitous drops, with some losing half their value in days. The WLFI token tied to Trump-affiliated World Liberty Financial has mirrored this decline.

Ed Chin of Parataxis Capital notes a saturation problem: "There are way too many of them and very little differentiation" among US crypto ventures. This comes as over 100 firms—from Japanese nail salons to cannabis retailers—have rebranded as Bitcoin treasuries in 2024 alone.

Speculative fervor persists in pockets. Eightco Holdings skyrocketed 3,000% after announcing plans to acquire Worldcoin and appointing analyst Dan Ives to its board. The appeal of crypto-equity hybrids remains their ability to package blockchain exposure in familiar stock wrappers, though many such vehicles now trade on dwindling confidence as coin prices retreat.

Bloomberg data confirms the cooling sentiment extends beyond rhetoric to actual capital flows, with CryptoQu metrics showing measurable demand contraction across exchanges.