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As we all know, Bitcoin (Bitcoin), the same is true for other cryptocurrency markets, as the major price changes of Bitcoin have caused ripples in the entire altcoin market time and time again, affecting sentiment and motivation.
For blockchain-related stocks traded in traditional financial markets, the situation seems to be the same. A quick glance at the charts reveals that they reflect the performance of Bitcoin over the past few months.
Just over a month ago, when the highly anticipated Coinbase stock went public, the cryptocurrency ecosystem was buzzing. Finally arrived on April 14th, This date also marks the latest historical high of the BTC price of $64,863.
Since its debut, the price of COIN has been steadily falling, lower than its direct listing price of US$381 and its reference price of US$250, to the current price of US$245. At the same time, the price of BTC has dropped by about 35%, which also brings Pressure other blockchain-related stocks, including Riot Blockchain and Marathon Digital Holdings.
Since its inception, COIN’s efforts have led to a decline in its valuation from a high of US$100 billion to the current US$49 billion. Its focus is on whether the exchange can achieve its expected profit in the future. , New centralized and decentralized participants appear every week and find a place among them.
Forex.com Global Market Research Director Matthew Wheeler recently highlight With the popularity of cryptocurrencies worldwide, Coinbase is now facing increasingly fierce competition.
“Although Coinbase has been able to rely on its first-mover advantage and brand awareness so far, the competition with’CeFi’ brokers such as BlockFi and’DeFi’ alternatives like Uniswap will continue to compress profits.”
These concerns have led some analysts, including New Constructs CEO David Trainer, to warn that The price of the coin may fall below $100:
“Investors should expect that the stock will continue to underperform because the stock price is likely to fall to $100 or less, because it is clear that the company is unlikely to meet the future profit expectations generated by the stock price.”
Bitcoin selling price difference
Although COIN’s struggles can be attributed to the fact that it is still a newly listed stock that is still seeking to establish a fair market value, the downtrends of Riot Blockchain and Marathon Digital Holdings both outperformed BTC in 2021, which also shows this effect. Bitcoin prices are weak and stock prices related to cryptocurrencies are rising.
A survey of the broader financial market showed that the decline of the entire technology industry and concerns about rising inflation have further hindered the price increase of blockchain-related stocks, and there is little sign that these pressures will be in the short-term. Within relief.
Since the 2017-2018 bull market, the prices of RIOT and MARA have followed the price trend of Bitcoin, so further price growth of these and other blockchain-related stocks may depend on the performance of BTC.
Strangely, the prices of RIOT and MARA will rise before Bitcoin in 2021 and reach a record high, indicating that they may be used as leading indicators of future price movements of BTC and altcoins while providing traditional markets. Investors do not need to directly hold crypto. Currency can access asset classes.
However, based on the way the market moves forward, it should be noted that Bitcoin is still the main market indicator for everything related to blockchain and cryptocurrencies, which means that the same is true for BTC and other markets.
The views and opinions expressed here are only those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, so you should conduct your own research when making a decision.
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