After the second week of trading, Coinbase shares closed at $291.60. That’s a decline of 11.17 percent from its Nasdaq opening price of $381 on April 14.
Analysts predicted that the price of Coinbase’s shares would be closely tied to the cryptocurrency market as the exchange went public last week. Friday’s performance may have backed them up. Bitcoin fell below $50,000, wiping out over $200 billion from the cryptocurrency industry in a single day. Coinbase saw a loss of -0.63% on Friday.
Bitcoin was $49,309.91 with decrease of -0.40 percent and Ethereum was $2,212 with a -2.8 percent loss at the time of writing this post, despite the cryptocurrency market seeing a small recovery of +1.30 %.
Following Tesla’s announcement that it had invested $1.5 billion of its cash in Bitcoin, analysts predicted that the stock price will move in lockstep with the cryptocurrency sector. Tesla, on the other hand, seemed to be resilient to the cryptocurrency market’s massive sell-off on Friday, posting a profit of 1.35 percent to settle at $729.40, up from the previous close of $719.69.
While wall street is asleep, the cryptocurrency market is swift in making bullish or bearish decisions and the impact can only be felt from the opening bell on Monday. There can be a wide disparity between Wall Street and the cryptocurrency sector right now. However, if adoption continues to rise, the gap can close quickly.
What this means
- The cryptocurrency market’s sell-off was tied to Biden’s proposal of increasing capital gain tax. This caused massive panic leading to over 500,000 investors taking a loss.
- Stocks that are closely tied to the cryptocurrency performance may decrease as the crypto market declines, vice versa.
- It is paramount that investors look for assets that diversify their portfolio, and make sure that they consider the magnitude of correlation between assets held in wall street and the crypto space.
- Dodgecoin and Solana were not significantly impacted by the sell-off in the crypto space, as they both posted double-digit gains as of Friday night.
