Coinbase stock has suffered through an entire week of losses and now, the crypto exchange has slid to a new record low. The record price comes less than two weeks after its first day of trading.
Coinbase not getting it done on Wall Street
The stock is still in its infancy and searching for a foothold in the market. Hedge fund executive at Arca, Jeff Dorman, thinks it’s too early to make any definitive statements about what this means. Dorman said:
“I’m not surprised at all by the COIN price action, No major banks have written research on COIN yet. Plus, most investors will want to see another quarter of numbers to see if 1Q was a flash in the pan or not.”
Meanwhile, firms like Galaxy Digital, Voyager, and Silvergate have watched their stock prices take a big hit in the last week.
Retail crypto broker Voyager saw its market cap drop from $3.3 billion the day before Coinbase’s debut to a low of $2.1 billion on April 20. Galaxy Digital and Silvergate have experienced similar dips in market cap within the same period. It is worth noting that the aforementioned brokers were growing at very high rates ahead of Coinbase’s listing.
Bitcoin price slips below $50,000
Bitcoin’s price, as of Friday morning, dropped below $50,000. Overall, more than $1.5 billion in digital currency has been liquidated at the same time.
The price movement was a result of a few factors plaguing the digital currency sector lately. First, it’s speculated that as the world recovers from COVID-19, investors could be shifting away from risky cryptocurrencies toward more stable real estate ventures.
Additionally, U.S. President Joe Biden appears interested in raising the capital gains tax on wealthy Americans from 20% to 39.6%. This would nearly double how much the ultra-rich would be on the hook for.