Coinbase share price plunge
With Coinbase shares down over 85% from last year’s peak and competitors like Binance.US announcing they will offer fee-free trading for Bitcoin as cryptocurrencies remain under pressure to see how far can the company’s share price still fall?
The short answer is much, much further. Just because a stock looks “cheap,” doesn’t mean it can’t get even cheaper, traders have found to their detriment by trying to “buy” Coinbase’s stock decline later this year, which is accelerating again approaching its all-time low at $40.83, according to Google Finance.
In the short term, ie over several days and up to three weeks, some countertrend traders managed to make money by buying Coinbase stock, for example around the time the company released its first quarter (Q1) results mid-year. published. May, which missed analyst estimates by a wide margin and caused the stock price to hit an all-time low of $40.83.
The ensuing countertrend rally to the late May high and above the psychological little $80 provided some investors with a 100% near-term gain.
Many investors this year believed the popular belief that a roughly 80% decline in the value of a tech stock can result in a long-term gain of several hundred percent, depending on how many of those stocks turn positive in the years following the point .com bubble in 2000 but are still waiting for their positive return.
Also, keep in mind that several of the dot.com companies such as Pets.com, Boo.com, and Worldcom went bust, and that the Nasdaq 100, after declining 78% of its value by October 2002, has failed to match its previous value would be all-time high by April 2015!
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