Bitcoin market is hot, but traders react tamely to cryptocurrency concept stocks

After hitting a low in late January, the price of bitcoin has soared a cumulative 30%, including a cumulative gain of 13% in March. However, while the cryptocurrency market is hot, traders are reacting tepidly to cryptocurrency concepts.

Data shows that the NYSE FactSet Global Blockchain Technologies Index, an index tracking 35 cryptocurrency-related stocks including Riot Blockchain Inc (NASDAQ:RIOT), Galaxy Digital Holdings Ltd (TSX:GLXY) Global Blockchain Technologies Index is down about 15% in 2022.

DA Davidson analyst Christopher Brendler believes there is a lot of debate among investors about how much these companies are worth and their long-term position on the stock market.

He said the volatility in the stock market and the Federal Reserve's interest rate hikes have put these crypto concept stocks under a lot of pressure.

Earlier this year, bitcoin fell 50% from its record highs last November, while crypto mining stocks were also hit hard. For mining stocks, any price plunge in bitcoin will squeeze their margins, and despite the recent bitcoin rally, high energy prices caused by the Russia-Ukraine conflict over the past month have also increased their mining costs.

So far this year, Marathon Digital Holdings Inc (NASDAQ:MARA) is down 10% and Bit Digital Inc (NASDAQ:BTBT) is down even as much as 40%.