• Riot Platforms stock has dropped by more than 20% from its YTD high.
• The decline is attributed to the BTC price dip and rising bearish liquidations in the market.
• Analysts at Bernstein said that Bitcoin is perfectly positioned as a safe-haven asset alongside gold, reducing the risk of a banking crisis.

Riot Platforms Stock Drops

Riot Platforms (NASDAQ: RIOT) stock price has drifted downwards in the past few days as Bitcoin and other cryptocurrencies retreated. The shares retreated to a low of $11.48 in the pre-market session. This means that the stock has dropped by more than 20% from the year-to-date high, meaning that it has moved to a bear market.

Reason for Decline

The main reason for this decline is because Bitcoin recently rose above the key resistance level at $30,000 which led to volatile movements and bullish liquidations have consequently jumped in the past two days. Liquidations happen when brokers and exchanges forcefully close positions of leveraged positions which usually puts prices under pressure. In addition, several regional banks published strong results with inflows rising by more than $3 billion, reducing risks of a banking crisis.

Analysts’ View on Bitcoin

Analysts at Bernstein said: “Any potential dislocation, whether on the bank’s credit side, or on the sovereign side …positions bitcoin perfectly as a safe-haven asset alongside gold.“ Therefore, there is an argument that investors can buy into Riot Blockchain stock now given its underperformance compared to Bitcoin price movements and its potential to rebound if BTC continues to rise or remain steady near current levels.

Is it Safe to Buy?

Whether it’s safe to buy into Riot Blockchain stock now depends on how one views Bitcoin and cryptocurrency prices over time. As I wrote earlier, these companies are highly correlated with each other so if Bitcoin prices continue their upward trend then Riot Blockchain could experience an uptrend as well due to their similarities in operations and interests within cryptocurrency mining industry. For those who believe that BTC will see stability or increases over time then buying into RIOT shares may be a good option right now before they start climbing back up again towards their YTD highs – depending on individual risk tolerance levels too obviously!

Conclusion

Overall while there is no guarantee that RIOT shares will bounce back soon given current market conditions influenced by both underlying assets such as BTC but also external factors like banking sector performance etc., those looking for upside potential may want to consider investing into this company given its historical gains over time despite short term dips – along with proper risk management of course!

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