People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021.
Coinbase slid to a record low Friday, extending losses for a fifth day in a row amid a plunge in bitcoin’s price. The cryptocurrency exchange fell 3.87% to as low as $282.07, about a 14% drop from its first day of trading last week. Mizuho initiated coverage of Coinbase with a “neutral” rating and price target of $285. Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Coinbase slid to a record low Friday morning, extending losses for a fifth day in a row amid a plunge in bitcoin’s price.
The cryptocurrency exchange fell 3.87% to as low as $282.07, about a 14% drop from the price on the close of its first day of trading on public markets last week.
Meanwhile, Bitcoin slid below $50,000 on Friday, and simultaneous drops in other digital currencies erased $260 billion off the total value of the cryptocurrency market.
Coinbase’s stock is heavily tied to bitcoin’s price and a “perfect storm” of recent news is likely dragging down both the cryptocurrency and the exchange, said Dan Dolev, Mizuho Securities Senior Analyst, FinTech Equity Research.
The analyst noted that President Biden’s plan for the US to achieve net-zero emissions in the next few decades is likely weighing on bitcoin’s price given the environmental concerns with mining the coin. And, more countries are tightening regulation, including Turkey’s central bank, which is banning the use of cryptocurrencies.
Dolev and Mizuho Associate Ryan Coyne initiated coverage of Coinbase on Wednesday with a price target of $285 and a “neutral rating.”
Dolev told Insider Friday morning that he didn’t anticipate the stock to slide near his price target so quickly. When he initiated coverage on Wednesday, Coinbase was hovering around $320 a share.
Over 80% of Coinbase’s total