BITCOIN OUTLOOK: IS COINBASE ($ COIN) THE BEST ROBINHOOD ($ HOOD)?
- Bitcoin pricing (BTC /USD) aims higher thanks to a better cryptographic view
- Coinbase ($ COIN) could benefit from a recovery in demand major cryptocurrencies
- Robinhood ($ HOOD) closed almost -9% below its opening IPO price $ 38.00 / share
Bitcoin has risen more than 12% in a week as BTC / USD pricing sees demand inflows thanks to another solid protection of the $ 30,000 psychological level. The “B-word conference” panned by Elon Musk, Cathie Wood and Jack Dorsey last week seems to have boosted the confidence of crypto investors enough to send Bitcoin above this established floor.
However, in the last two trading sessions, the BTC / USD has struggled to maintain its growth rate as the crypt struggles with resistance at a price level of about $ 40,000. The headwind also coincided with Amazon ($ AMZN) denial possible introduction of Bitcoin. However, given the update Fed instructions and the probability that US dollar continues to weaken, Bitcoin’s outlook turns rosy again.
$ COIN – MOUNTING STOCK PRICE VS BITCOIN
It can also increase the rise of the cryptographic Coinbase ($ COIN). Coinbase’s share price has fallen by almost -40% since its trading debut on April 14 and has largely followed Bitcoin. A 10-day correlation of 0.83 highlights this strong positive relationship between $ BTCUSD and $ COIN. As such, if Bitcoin appears to have bottomed out, it could be a bullish “knock on the shoulder” for Coinbase to begin reclaiming the recent downside. This could give $ COIN a chance to outperform the IPO-cursed Robinhood ($ HOOD).
$ HOOD – ROBINHOOD STOCK PRICE ON IPO DAY
Robinhood’s IPO was quite disappointing today, as $ HOOD closed almost -9% below its opening price of $ 38.00 / share. Thinking about what is the initial public offering at its core, one would be free to argue about how private companies have a exit strategy in their more mature business to cash out (ie sell). In this regard, there have been many cases throughout history where a company’s IPO coincides with a peak in this field.
For example, Coinbase’s IPO was aligned with Bitcoin peaks earlier this year. This was also the case with the Glencore IPO with a peak in industrial metals in 2011, as well as the IPO of the Blackstone Group major stock indices If we focus back on Robinhood’s IPO, it is possible that the retail business – and Robinhood’s business – may grow at the top level. This could mean that $ HOOD will continue to face downward pressure after its IPO after prices are discovered. Even if this scenario is wrong and Robinhood rises above its IPO price, I still think the probability is more likely that $ HOOD will be below $ COIN.
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