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Coinbase and Crypto Stocks Fall as Bitcoin Trades Sideways Cryptocurrency

Coinbase the stock fell nearly 8% amid a less-than-bullish rating from Wells Fargo and harsh comments from well-known short seller Jim Chanos.

Several others Bitcoin-Adjacent public companies, including MicroStrategy and Block Inc., also saw their stock prices.

Shares of Block (SQ) fell 5.37% on Thursday, changing hands at $55.90 at the end of Thursday’s trading session from $164 at the start of the year.

MicroStrategy (MSTR), which traded above $550 in January, closed down 3.92% at $211.82, rising to $214 on Friday morning.

On today’s open, COIN immediately fell from $64.65 to $60.76. The stock has since recovered and is now trading at around $62.

Wells Fargo said the San Francisco-based company is facing increased competition from FTX and Binance, according to a CNBC report.

In a research note, Wells Fargo analyst Jeff Cantwell said downward pressure on Coinbase in the current bear market is inevitable and the company will sell its COIN holdings at a fixed price of $57. nearly 83% less than its record. of $342 in April 2021.

According to Cantwell, this is “fair value, in our view, for a high-quality company, but which operates in an industry characterized by pricing pressure, competition and increasing regulation, with an unclear path forward. towards sustainable profitability.

Coinbase, which makes money from fees paid by customers when transacting Bitcoin and other cryptocurrencies, posted a net loss of more than $1 billion in the second quarter of 202, its second quarter of consecutive negative income. In the second quarter of 2021, the exchange’s net income reached 1.6 billion.

Bitcoin meanwhile is trading largely sideways, down 0.2% in the past 24 hours to the current price of $19,485, per CoinGecko.

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