The Gemini stock price has plummeted to a record low, marking a significant downturn that began shortly after its initial public offering in September. This drastic decline has resulted in a $2.6 billion wipeout, leaving investors reeling and wondering what’s next for the cryptocurrency exchange.
Key Highlights of Gemini’s Stock Performance
The recent downturn in Gemini’s stock price has been nothing short of dramatic. Some key points to consider include:
- The Gemini share price has crashed, triggering a substantial $2.6 billion loss in value.
- This decline coincides with the sell-off in Bitcoin treasury companies, indicating a broader trend in the cryptocurrency market.
- Technical analysis suggests that the stock may experience further downside, potentially reaching as low as $5, although this could be mitigated if the stock rebounds above the upper channel boundary.
Gemini Space Station, backed by the Winklevoss Twins, has seen its stock price plunge to a record low of $9.70, representing an approximately 80% drop from its all-time high. The company’s market capitalization has also significantly decreased, from $3.81 billion to $1.14 billion, signaling a substantial loss of investor confidence.
Understanding the Reasons Behind Gemini’s Stock Crash
Gemini, a leading cryptocurrency exchange founded by Tyler and Cameron Winklevoss in 2013, went public in September, following in the footsteps of other crypto companies like Circle, Bullish, and Figure. Initially, the stock soared to $45 but began a free fall to its current price of $9.8. This decline mirrors the recent crypto market crash, affecting Bitcoin (BTC) and other altcoins, as well as the performance of Bitcoin treasury companies like Metaplanet and Michael Saylor’s Strategy.
Gemini is the 26th-largest Bitcoin treasury company globally, holding 4,002 coins worth $372 million. The stock’s performance is closely tied to the crypto market’s overall health, with low trading volumes during bear markets significantly impacting the company’s revenue. Unlike Coinbase, Gemini’s revenue is primarily generated from transaction handling, with less emphasis on custody, stablecoin, or subscription services.
The company’s recent financial report showed mixed results, with revenue increasing to $50.6 million in the third quarter from $24 million in the same period last year. However, the net loss jumped to $160 million from $87 million, indicating rising operational costs. With $487 million in cash and equivalents, along with $87 million in restricted cash and cash equivalents, the company may need to consider raising capital to sustain its operations.
Gemini Stock Analysis and Market Sentiment
The sentiment around newly listed companies, including Gemini, has waned, contributing to the stock’s decline. Similar companies like Circle, which initially soared, have plunged, erasing over $40 billion in value. Bullish stock has also dropped by 65% from its all-time high, while eToro and Webull, which offer crypto trading solutions, have experienced significant declines as well.
GEMI stock chart | Source: crypto.news
Technical analysis of the GEMI stock chart reveals a strong downtrend over the past few months, with the stock forming a descending channel and remaining below the 50-period moving average. The Supertrend indicator suggests that the stock will continue to fall, with bears targeting the $5 support level. This outlook could change if the stock price rebounds above the upper channel boundary, indicating a potential reversal.
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