Coinbase and Riot Blockchain stock up

Coinbase and Riot Blockchain stock up

The crypto market’s small bull run in early 2023 has also benefited the cryptocurrency-related equity sector, with the share price of both Coinbase and Riot Blockchain rising.

Coinbase’s latest stock performance

Coinbase went public in April 2021, at the height of the bubble.

The starting price was even around $350, which was a peak reached again in November of that year, also at the height of the bubble.

In contrast, 2022 was a year to forget, with a collapse of as much as 91% from the peaks of November 2021.

The lowest peak was reached in late December and early January 2023, when Coinbase’s share price had plunged to around $32, but then there was a big bounce.

Basically, the trend of COIN stocks on the Nasdaq quite closely follows the trend of the crypto market, with some differences.

For example, Bitcoin’s annual high was a few days ago, while Coinbase’s annual stock price high happened in early February.

In other words, in the first 30 days of the year, Coinbase even outperformed Bitcoin, by a resounding +177%, which was unsurprisingly followed by a correction.

However, the correction did not bring the price back to $32, but just above $50, and then started another small bull run that brought it back above $80 after mid-March.

However, the peaks in early February and March 21 were not confirmed, and Coinbase share price later returned below $70.

However, if we compare the overall performance from the end of 2022 until today, the evolution of Coinbase’s share price seems to be similar to the price of Bitcoin.

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In other words, the trajectory still looks pretty similar, only paradoxically, Coinbase stock is proving to be much more volatile than that of Bitcoin.

Analysis of the Riot Blockchain stock

The price of Riot Blockchain’s share, on the other hand, has been slightly different, but in line with the crypto market.

However, it is worth specifying that the exact name under which RIOT stock is listed on Nasdaq is now Riot Platforms, and no longer Riot Blockchain.

The RIOT stock has been listed even before Bitcoin was born, although it obviously had nothing to do with the blockchain, which did not yet exist, or with the crypto market, which still did not exist.

Therefore, comparisons with the distant past are meaningless and it is better to only analyze the stock market results from 2018 onwards.

Oddly enough, the highest peak in recent years was neither in April/May 2021, nor in November, but in February.

In other words, the resounding speculative bubble that had formed on the price of this stock, by +2300% in just five months, burst well before the one that swelled in 2021 on the crypto market.

Note that 2022 was a very bad year for RIOT, which plunged from $79 to $3, but the price never fell below the October 2020 initial level of $2.5. In fact, during 2020 it had even dropped to $0.5, so compared to 2022, 2022 was not bad at all.

On the other hand, the speculative bubble that swelled between November 2020 and February 2021 on this stock was really exaggerated, so much so that what happened to Riot’s price in 2022 was only natural.

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2023 opened with a price around $3.5, but from that level it did practically nothing but rise.

By mid-January it had risen above $6, while just after mid-March it had also risen above $9.

It hit its annual high during yesterday’s session, above $14. In other words, it has risen more than 300% since the beginning of the year.

In other words, the parabola has been very similar to the price of Bitcoin, only much more pronounced.

Just like Coinbase, this is a trend-following stock in the crypto market, but with even greater volatility.

In this particular case, the volatility is definitely very pronounced, more so than Coinbase, and the trend over the months is much more similar to Bitcoin than COIN.

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