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Gemini’s stock has plummeted to an all-time low, a relentless slide from grace that began shortly after its hyped September IPO.
Summary
- Gemini share price has crashed and triggered a $2.6 billion wipeout.
- Its drop coincided with the sell-off in Bitcoin treasury companies.
- Technicals points to more downside, potentially to $5.
Winklevoss Twins’ Gemini Space Station Sees Icy Plunge: From a cosmic high of $3.81 billion market cap to a chilling $1.14 billion, the crypto platform backed by the famous duo has plummeted. Its token valuation cratered by ~80%, hitting a record low of $9.70. Is this a temporary dip or a sign of a deeper crisis in the Gemini universe?
Why Gemini stock price crashed
In 2013, twin titans Tyler and Cameron Winklevoss unleashed Gemini, a crypto exchange that has since become a leading player. Now, following in the bold footsteps of crypto pioneers like Circle, Bullish, and Figure, Gemini took center stage on the public market in September, signaling a new era for the exchange and the industry as a whole.
Once a high-flying $45, the stock has since plummeted to a mere $9.8. Its dizzying descent mirrors the recent cryptoquake that rattled Bitcoin (BTC) and sent tremors through the altcoin market.
The crypto market’s chill wind stung even Gemini, the 26th-largest Bitcoin holder. Their treasury, stacked with 4,002 coins valued at $372 million, mirrored the agonizing descent of Bitcoin behemoths like Metaplanet and Michael Saylor’s Strategy.
Bitcoin’s bear hug on the market is dragging stocks down with it. Altcoins are reeling, and crypto exchanges are ghost towns, echoing with the silence of a low-volume bloodbath.
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Gemini’s revenue stream flows primarily from the vibrant marketplace of crypto transactions, a stark contrast to Coinbase’s diversified portfolio. While Coinbase casts a wider net, encompassing custody solutions, its own stablecoin, and recurring subscription models, Gemini thrives on the core exchange of digital assets.
The company’s latest financial report paints a picture of explosive growth shadowed by deepening losses. Revenue more than doubled, rocketing from $24 million last year to a stunning $50.6 million this quarter. Yet, this triumph is tempered by a surge in net losses, ballooning from $87 million to a hefty $160 million. It’s a high-stakes balancing act between rapid expansion and profitability.
Bleeding red ink, the company’s dwindling reserves – a mere $487 million in cash and equivalents, plus another $87 million tethered as restricted cash – hint at a looming decision: a potential capital raise to stay afloat.
Remember the initial hype around new listings? That’s fading fast, and GEMI stock is feeling the chill. Circle, once the darling of the market, has seen a staggering $40 billion evaporate. Bullish investors are nursing wounds as their stock plunges 65% from its peak. Even crypto trading platforms like eToro and Webull are caught in the downdraft, proving that even gold rushes can end with a whimper.
Gemini Space Station stock analysis
GEMI stock chart | Source: crypto.news
GEMI’s stock price is currently caught in a downward spiral. A look at the two-hour chart reveals a persistent downtrend over the past few months, carving out a descending channel. The stock price struggles to break free, consistently finding resistance below the 50-period moving average, signaling continued bearish momentum.
Gemini’s stock price is trapped beneath the Supertrend ceiling, carving a relentless staircase of lower lows and lower highs. Brace for a potential plunge as bears eye the $5 support level. The bearish grip loosens only if Gemini rockets past the upper channel boundary, negating the current downward trajectory.
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