Bullish stock price has been in a free fall since its listing in August. After peaking at $117, it has plunged to $52, erasing billions of dollars in value as its market capitalization fell to $7.65 billion.
Why Bullish stock price has plunged
Bullish is a top crypto exchange and publisher backed by Peter Thiel. It operates the Bullish crypto exchange and Coindesk, one of the top news websites in the crypto industry.
In addition to offering a news platform, Coindesk also provides indices, which companies use to create crypto-related funds. Most importantly, Bullish is one of the top Bitcoin treasury companies as it holds 24,000 coins, currently worth over $2.68 billion.
Bullish stock price has plunged this year as investors sour on Bitcoin treasury companies. A closer look shows that most of these companies, like Metaplanet, Strategy, Trump Media, and MicroCloud Hologram, have all plunged.
The ongoing BLSH stock crash is also due to the ongoing selling by some of the earlier buyers. Historically, investors who benefit after the IPO tend to sell their holdings to take profits.
The decline is also in line with most companies in the crypto industry. Coinbase stock price has plunged by over 30% from its highest point this year. Robinhood stock has dived by 14% from the year-to-date high.
Bullish earnings ahead
Meanwhile, Bullish stock price has plunged as investors wait for the upcoming financial results set for later this month. These results will provide more information about its business and whether it is growing.
The challenge for Bullish is that most of its revenues come from transactions, a sector that can be highly volatile. For example. Coinbase has invested substantially to diversify its operations and is now generating revenue from custody, stablecoins, staking, and subscriptions.
Bullish stock price has also plummeted after the recent results showed that its digital asset sales remained flat in the first quarter. It made $80.2 million in revenues, lower than the $80.4 million it made in the same period last year.
Bullish also made a big loss in this period, with the net loss soaring to $348 million from a profit of $104 million in the same period last year. The profit and loss was mostly because of the change in fair value of investment in financial assets.
The one analyst tracking the company on Yahoo Finance expects its revenue to come in at $58.6 million, while its annual one will be $325 million. If accurate, the annual revenue will be higher than the $250 million it made in 2024.
A recent report showed that its total trading volume is not moving in the right trajectory. Its volume was $48.8 billion in August, down from $53.8 billion in July. Its Q2 volume of $179 billion was lower than Q1’s $251 billion.
BLSH stock price analysis
The hourly chart shows that the Bullish stock price has plummeted from a high of $117.12 to the current $52.35. It recently dropped below the important support level at $56.42, it lowest swing on August 20. It is now attempting to retest this resistance level, in what could be a break-and-retest pattern.
Therefore, the stock will likely rise to $56.4 and then resume the downtrend, potentially to the all-time low of $47, followed by the psychological point at $45.
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