Being the most prominent cryptocurrency in the market, it is not surprising that major price drops and rises in Bitcoin influence the entirety of the crypto market, affecting the sentiment and momentum of investors.
The same principle applies to other blockchain-related shares that are traded in the financial markets. According to the data from the charts, it is plainly clear that they are following Bitcoin’s performance in the past several months since it is only natural that most cryptocurrencies will lean the same way Bitcoin goes.
On April 14th, Coinbase stock listings were established causing a ripple in the crypto industry since Coinbase stock was anticipated by the majority in the industry. April 14th is also the same date that marks the highest price rate in Bitcoin to date, $64,863 approximately.
Coinbase prices have gradually declined since its debut, falling under the direct listing price of $381 and the reference price of $250. Currently, the stock is worth $245, when coupled with the 35% drop in Bitcoin prices, other blockchain stocks such as Riot and Marathon Digital Holdings have been under pressure.
Due to the struggles, it has faced since its launch, Coinbase’s valuation prices have dropped from $100 billion to $49 billion. With the rise of new centralized and decentralized players, a growing concern has arisen regarding whether or not the exchange will reach expected profits in the future.
On another note, Bitcoin has been outperformed by several altcoins in 2021 including Riot and Marathon Digital Holdings that have been mirroring Bitcoin’s bull market from 2017 to 2018. Despite being ahead of Bitcoin, it should be noted that BTC still remains the dominant crypto in the market, meaning which direction Bitcoin leans, the market will ultimately follow. This can indeed change in the future but these past days have proven that this is still the case.