WE ARE CLOSING in on my BUY ZONE
Reviewed 05-18-2021 Developed 04-23-2021
I will
be LONG (800/ /200
for the portfolio) on “COIN” at $175 or a failure to hold below $220.00 target $320.00 then $375.25
Its optionable also affords GREAT covered call potential/premium
close to 10% (out to July monthlies, ATM)
Crypto platform Coinbase rolls out convertible debt deal, stock skids below $250 reference price
From Barrons.....Coinbase Global, the leading U.S. cryptocurrency exchange, is highly dependent on Bitcoin. But Bitcoin is becoming a smaller overall part of the crypto-economy, and that could pose a problem for Coinbase. If other coins that aren’t supported by Coinbase (ticker: COIN) start to dominate the industry, the company may lose market share to other exchanges that list those coins. The shift in the crypto market away from Bitcoin dominance was one topic on Coinbase’s earnings call late on Thursday after the company released its first-quarter earnings. Investors had mixed feelings about the earnings report, which showed Coinbase’s fast growth but also highlighted how competition could affect the company’s results. Shares were up 1% in midday trading Friday.
Bitcoin was once the unquestioned king of cryptocurrencies, making up more than 90% of the crypto market at the start of 2017. Its market share has since declined, as more coins have been introduced and gained in value. But Bitcoin still made up about 60% of the total crypto market cap in 2020, and was even around 70% at the start of 2021 as Bitcoin’s value surged. Since then, Bitcoin has risen in value but other coins have risen even more. In the past week, Bitcoin has dropped 12% even as Ethereum — the second most valuable cryptocurrency, has risen 5%. Bitcoin now makes up about 40% of the total $2.3 trillion market cap of cryptocurrencies.
In the past, cryptocurrencies tended to move in tandem, with nearly all of the top 50 coins heading in the same direction on any given day. But that has now clearly changed.
So far, it’s not clear whether Bitcoin’s relative underperformance is significantly hurting Coinbase’s results. Bitcoin makes up 62% of the assets on Coinbase’s platform, meaning its customer assets are more heavily weighted toward Bitcoin than its portion of the overall crypto market cap would imply.
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