With Bitcoin gaining 2.62% in the last 24 hours, shares of Coinbase and MicroStrategy may also begin to garner some points.
The stocks of crypto company Coinbase Global Inc (NASDAQ: COIN) and business intelligence company MicroStrategy Inc (NASDAQ: MSTR) are currently down as Bitcoin continues to plummet. The disheartening Bitcoin price is affecting shares of Coinbase, which is heavy in Bitcoin exchange, and it also has an impact on MicroStrategy, which has heavily invested in BTC. As Coinbase stock dropped over 9%, MicroStrategy also shed 9% in reaction to Bitcoin falling to its lowest since July last year. Currently, Coinbase stock is down 2.33% to $187.01 in after-hours trading; MicroStrategy stock has lost 1.47% in the last 24 hours, while Bitcoin trades at $36,060.
It is no news that Bitcoin has not been performing well for some time, losing about 50% off its all-time high. Despite a lot of predictions for continued gains, BTC has rather crashed, as well as other major cryptocurrencies. According to Coin Metrics, the price of Bitcoin hit its lowest point since July on the 24th of January. On the day, BTC fell to $32,982. However, the cryptocurrency began to rebound, rising to $37,183.25, and its market cap also jumped 5.6% in afternoon trading. At the same time, Ethereum declined to its lowest since July last year- $22,17.41. Bitcoin and Ether have shed over 45% each from their record highs.
Bitcoin Price Recovery May Influence Stocks of Coinbase and MicroStrategy
With Bitcoin gaining 2.62% in the last 24 hours, shares of Coinbase and MicroStrategy may also begin to garner some points. Both Coinbase and MicroStrategy have recorded nothing but losses in the last twelve months. While MSTR has lost 35.17% in a year, COIN has diminished 24.13%.
Crypto assets and stocks have been moving with the same space, recording alarming losses. Investors have been putting away risk assets like technology stocks ahead of stricter monetary policies from the Federal Reserve. As BTC declined on the 24th of January, the Dow also lost up to 1,115 points while the S&P 500 briefly slipped.
Vijay Ayyar, Luno’s vice president of corporate development and international expansion, said Bitcoins price may enter the $30,000 – $32,000 range considering the current market sentiment. Ayyar added that the top crypto manages to hold above $30,000 for as long as a week, there is the possibility for further gains. In his opinion, the market may take some time to become bullish on BTC once again as many already lack confidence.
On the other hand, analyst John Roque stated that BTC could continue to plunge. He said:
“A 78% decline from the bitcoin high of nearly $69,000 could imply a potential downside figure of about $15,000. It’s probably safe to say that not one bitcoin bull has that figure in their model. To be sure, we don’t either… but we think it’s worth keeping in our back pocket in case we need it.”
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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