As the cryptocurrency market hits new highs, Coinbase stock plunges almost to its entry level ($ 250).
Is the hype already dead?
The course of action Coinbase touched, on Thursday, May 6, $ 256 when it closed. This is the lowest level recorded since the launch of theIPO (Initial Public Offering) when it went public. On the other hand, we are witnessing a new record for the entire cryptocurrency market and this level reaches the 2.4 trillion dollars of valuation of which more than 1000 billion just for the capitalization of bitcoin.
After an effervescent launch in which the price rose and held above $ 300 for almost a week, the stock price has seen a steady decline to the previously mentioned level. With a capitalization of $ 86 billion for its first day on the market, it is worth, at the time of this writing, $ 52.59 billion, a drop of almost 40%.
Mike Bailey, Director of Research at FBB Personal-Financial.com Partners said to Bloomberg :
“We saw a mini-bubble in PSPCs, initial public offerings (IPOs), cryptos, cleantech and hyper growth in late 2020 and early 2021 and many of these types of assets are suffering a bad mouth. wood “.
Although Mike Bailey isn’t entirely wrong about the downfall that the cryptocurrency market will most certainly experience at some point, it may still be too early to tell. Indeed, after each bullrun as we like them, the whole market can lose more than 80% of its value and this is simply an observation of the past. However, good days should still await us in this year 2021. For example, the adoption of VISA and MasterCard of the Ethereum network. VISA would like to adopt stablecoins in their payment network this year. There is still something to be exhilarated for the coming weeks.
In any case, stay alert because the market is NOT going up in a straight line and it will NOT go up to the moon. A trend reversal will take place, be sure, it is only a matter of time, and it will hurt.
Behind the generic signature “TCT editorial staff” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.