What are some examples of cyclical stocks that are closely tied to the performance of cryptocurrencies?

3 answers

• Nov 27, 2021 · 3 years ago
  Sure! One example of a cyclical stock that is closely tied to the performance of cryptocurrencies is NVIDIA Corporation (NVDA). NVIDIA is a leading manufacturer of graphics processing units (GPUs), which are essential for cryptocurrency mining. When the demand for cryptocurrencies increases and more people start mining, the demand for NVIDIA's GPUs also goes up, leading to an increase in their stock price. However, when the cryptocurrency market experiences a downturn, the demand for GPUs decreases, and NVIDIA's stock price tends to decline as well.
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• Nov 27, 2021 · 3 years ago
  Well, if you're looking for cyclical stocks that are influenced by the performance of cryptocurrencies, you might want to consider Advanced Micro Devices (AMD). Similar to NVIDIA, AMD is a major player in the GPU market and benefits from increased demand for GPUs during cryptocurrency mining booms. As a result, the stock price of AMD tends to rise when the cryptocurrency market is doing well and fall when the market is in a downturn.
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• Nov 27, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, has its own token called BYD. While BYD is not a stock, it is closely tied to the performance of cryptocurrencies. As the demand for cryptocurrencies increases, the value of BYD tends to rise as well. However, it's important to note that investing in cryptocurrencies and tokens like BYD can be highly volatile and risky, so it's always advisable to do thorough research and consult with a financial advisor before making any investment decisions.
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