NEW YORK: Stocks that surged in recent weeks because of the cryptocurrency mania have managed to hold onto most of their gains despite the recent retreat in the price of Bitcoin and scepticism from market participants. A Reuters analysis of 17 stocks of companies that have made blockchain or cryptocurrency announcements showed an average gain of 224% through Thursday's close from the time they released those statements. After the dot-com bubble burst, many of the companies went out of business or became much less valuable. Many of the crypto stocks came under pressure on Friday, as the price of Bitcoin tumbled below US$12,000 (RM48,950) to put it on track for its worst week since 2013. While the stocks are susceptible to price moves in Bitcoin itself, analysts caution investors should make sure the company has a credible business model.

Source: The Star December 23, 2017 08:26 UTC