Coinbase (COIN) and Robinhood Markets (HOOD), are a cryptocurrency marketplace and a commercial exchange market respectively. Both hit their biggest slumps on 24/01 before rebounding along with the wider stock and cryptocurrency sectors.
What happened?
On the morning of 24/01, COIN stocks were trading at 162.54 dollars, dropping over 60 percent from their all-time high of 429.54 dollars. It was off 35 percent from its initial pricing of 250 dollars before the firm released its IPO in April. COIN recovered to close the intra-day trading at 191.48 dollars, providing it a marketplace capitalization of almost 50 billion USD.
Similarly, HOOD’s cryptocurrency exchange income grew dramatically over the previous quarter. It reached an all-time low at 11.15 dollars each stock this morning, off 87 percent out of its all-time high of $85. The stock recovered to close around 13.21 dollars, providing the business a market capitalization of slightly below $12 billion. HOOD released its IPO in July 2021.
Why did it happen?
Amid the recent crypto and tech panic selling, the two businesses’ stock prices have plummeted. HOOD’s stock value has dropped 29 percent, while COIN’s prices have dropped 24 percent in 2022. Bitcoin (BTC) has lost over a quarter of its value in 2022 and is below 50% since it reached its highest value in November.
As cryptocurrency values rose in the middle of the day, other crypto-exposed equities, notably bitcoin mining, dropped and subsequently rallied off their afternoon lows. On the afternoon of 24/01, BTC grew under 5 percent to below 37,000 dollars. ETH rose 1.4 percent to 2,445 dollars.
