Sos Ltd plunges as Bitcoin pulls back from recent breakout

  • NYSE: SOS fell 2.80% in Wednesday’s trading session.
  • Chinese ADRs fall again even as Shanghai lockdowns ease.
  • Crypto markets cool as Bitcoin and Ethereum turn red.

NYSE:SOS nearly touched its 52-week low on Wednesday as the China-based crypto mining company continues to wade below the $1.00 price level. Shares of SOS fell 2.80% and closed the trading session at $0.45. SOS is trading below its 50- and 200-day moving averages and is down more than 48% so far in 2022. Broader markets had a mixed session on Wednesday as major averages failed to decide on the direction to take. The Dow Jones jumped 249 basis points, while the S&P 500 and NASDAQ were dragged lower by the implosion of Netflix (NASDAQ:NFLX) and fell 0.05% and 1.22% respectively .

Stay up to date with hot stock news!

Even though Shanghai has lifted some of its COVID-19 related restrictions, the economic impact of the closures is still being felt. Big companies like Tesla Inc (NASDAQ:TSLA) and Nio Inc (NYSE:NIO) have had to halt production. On Wednesday, Chinese ADRs were trading lower again as investors continued to weigh the impacts the restrictions will have on quarterly numbers. China also said it would follow the zero COVID policy for the rest of 2022 whenever an outbreak occurs. For this reason, Chinese ADR stocks were trading lower in Wednesday’s session.

SOS inventory forecast

SOS is a technology company in China that focuses on crypto mining and has recently established operations in the United States. The Chinese government banned crypto mining earlier this year, so companies have been rushing to move their operations overseas. Since it deals with Bitcoin and Ethereum, SOS will likely fluctuate based on these markets. Crypto markets were surging to start the week, but by Wednesday most top-tier cryptos had cooled and were trading slightly lower for the day.