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Buy the Rumor, Sell the News: Whales Dump Bitcoin (BTC) as Coinbase Stock Goes Live

Coinbase fintech company website displayed on a modern smartphone

Bitcoin enjoyed spectacular gains over the past 48 hours following the announcement that major crypto exchange Coinbase would launch an IPO on the Nasdaq stock exchange. The leading cryptocurrency even broke a new all-time high yesterday after a month of floundering below its previous high.

However, in a classic case of “buy the rumor, sell the news”, Bitcoin crashed immediately after the Coinbase stock went live, falling by 5% in a matter of hours. After securing a new all-time high of $64,800 earlier today, the price of BTC plunged rapidly before finding support around $61,500.

Coinbase Global Inc ($COIN)

The Coinbase Global Inc. stock, listed on Nasdaq under the ticker COIN, had some troubles of its own after launching but still came out with an impressive valuation at the close of trading.

With an aim for securing a $100 billion IPO, COIN briefly reached a valuation of $112 billion but eventually closed the day on only $85.78 billion. The COIN stock price opened at $381 per share, up 50% from Tuesday’s reference price, but soon began falling throughout the day to eventually close at a decent $328.28.

Speaking to MarketWatch, popular Bitcoin advocate Mike Novogratz says the Coinbase listing has precipitated something of a “frenzy” amongst investors that may result in a “washout”, with further losses in the short term. However, he remains bullish on Bitcoin, calling the Coinbase IPO “monumental” for the industry.

The listing meant the hashtag #Coinbase was briefly trending on Twitter throughout the day, with Coinbase CEO Brian Armstrong calling it a “big moment” for crypto in a 25 part tweet-storm marking the occasion. In the tweets, he speaks of the early days of Coinbase, the culture of cryptocurrency, and how it can help provide greater economic freedom to society.

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