Is Wall Street Eager To See Bitcoin Stocks Like MicroStrategy And Coinbase Fail?
Last Updated on 24 June 2021 by CryptoTips.eu
Back in 2001, Fortune Magazine published a list of the top losers of the Tech Bubble (or the Dotcom bubble if you will). Ranked at the highest spot was none other than Michael Saylor, who had to account for a stunning $13.53 billion loss during that timeframe.
As goes bitcoin, so goes Coinbase. For now at least. $COIN bulls hope that changes over the long haul. But the stock is still subject to the whims of short-term crypto swings. My story. https://t.co/55j8d17Axn
— Paul R. La Monica (@LaMonicaBuzz) June 22, 2021
Twenty years later, and Saylor is a successful CEO once again, writing the foreword to the newest edition of the Bitcoin Standard, the book by Saifedean Ammous that counts as the bible for those wanting to understand crypto.
First quarter
For the first three months of 2021, Wall Street cheered on MicroStrategy as it had invested in Bitcoin early. The stock was brought to unseen heights, and seemed as successful as the upcoming IPO of crypto platform Coinbase.
In the last twelve months, #Bitcoin has arrived on Wall Street. That is the news. The rest is noise. https://t.co/hDdTJYXrbm
— Michael Saylor (@michael_saylor) June 21, 2021
When Coinbase launched on 14 April, Bitcoin traded near $60,000 and the crypto enthusiasts could be seen changing their profile pics for laser-eyed features on their faces. Next stop $100,000 was all you heard.
Second quarter
The next three months after that are much less cheerful. Bitcoin was hit with FUD from China clamping down, climate change awareness and the threat of regulation in the US.
I don't think @michael_saylor is familiar with Murphy's Law. What if #Bitcoin crashes below $20K? Will #MicroStrategy sell stock at depressed prices to shore up its balance sheet? Will it sell Bitcoin to raise cash? If MicroStrategy goes bankrupt will creditors HODL its Bitcoin?
— Peter Schiff (@PeterSchiff) June 8, 2021
As a result, stock values of Microstrategy and Coinbase dropped as did Bitcoin. By now, whenever Bitcoin drops towards a lower level (even though it is still up for the year), Wall Street publications like the WSJ, Fox Business News and Fortune are laser-eyed on one thing only: the stock market value of companies that have linked their successes to that of Bitcoin. Companies most in focus are MicroStrategy, Coinbase and Tesla.
Because if there is one thing that Wall Street loves more than cheering on companies that do well, is watch them fall in case investors missed out on the way up.
adriantoday / Depositphotos.com
