Bakkt share price forecast after 60% crash
Bakkt (BKKT) stock price recently crashed. After hitting an all-time high of $50, the stock plummeted more than 60% to the current $21. The stock is still around 172% above its all-time low.
Why is BKKT stock falling?
Bakkt is a leading cryptocurrency company that started as a custodial company. Over the past few years, the company has transformed and added more services. Its current services include custody, derivatives, rewards and a wallet. It achieves all of this through key partnerships with companies such as Google, Mastercard, Finastra, and Wyndham, among others.
Bakk has raised millions of dollars from investors. According to Crunchbase, the company has raised over $807 million. This includes the funds it raised when it went public in October.
Bakkt has a market capitalization of more than $557 million, according to data from Webull. However, this market capitalization is not exact. This is because the company has more shares and warrants outstanding today. Some of these warrants belong to ICE, the company that owns the NYSE and Creditex. Including all of that, Bakkt has a market capitalization of over $8 billion.
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Bakkt’s stock price fell sharply due to its relatively weak quarterly results. The company said its third-quarter revenue reached $9.1 million. This is a 38% increase from the same quarter in 2020. As a result, the company’s net loss increased from $18 million to over $28.8 million.
As a result, these low earnings have many investors wondering if the company is actually overvalued.
Another reason why BKKT stock slumped is that recent news about Mastercard and Fiserve has started to fade. As you remember, these partnerships were responsible for the parabolic movement that occurred in October.
At the same time, the sluggish price of Bitcoin also contributed to the performance. Indeed, most Bitcoin-exposed companies like MicroStrategy and Riot Blockchain have all pulled back.
Bakkt Share Price Forecast
The daily chart shows that Bakkt stock has come under intense pressure over the past few weeks. This decline saw the stock drop below the 61.8% Fibonacci retracement level. It also crashed below the 25-day moving average. It is slightly higher than the 50-day MA.
Therefore, at this point, the stock is likely to continue falling as the bears target the key support at $17.43, which lies along the 78.6% retracement level. In the long run, however, the stock will likely rebound.