The cryptocurrency rally could end in summer on a corrective basis and cryptocurrency exchange Coinbase Global Inc. (NASDAQ:COIN) could be one of the “easiest shorts there is” if the virtual assets begin “to crack,” according to Boris Schlossberg, a leading foreign exchange expert.
What Happened: “To me, the weakness in Coinbase is suggestive that there’ll be further weakness if any of the cryptos begin to crumble as the summer goes by,” Schlossberg, managing director of FX strategy at BK Asset Management, said Wednesday on CNBC’s “Trading Nation.”
The analyst believes that even if Dogecoin (DOGE) reaches traders’ target of $1 by Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s hosting of “Saturday Night Live” on May 8, investing in a space with limited fundamental catalysts carries significant risk. Musk is a big supporter of the meme cryptocurrency, which is expected to feature in the show.
See Also: How to Buy Dogecoin (DOGE)
Schlossberg added that while Bitcoin (BTC) will never be a currency, it has some value in the longer term as an alternative to gold due to its affordability.
Gina Sanchez, founder and CEO of Chantico Global, noted that the crypto space is very volatile and therefore it was hard to see these digital assets as a true form of money. She believes that crypto was the marginal benefactor of excess stimulus and a closed-down economy.
Why It Matters: Dogecoin is on a major bull run this week and its year-to-date gains stand at an impressive 13,574.59%. The meme cryptocurrency’s gains can be partly attributed to celebrity endorsements from the likes of Musk, Dallas Mavericks owner Mark Cuban and rapper Snoop Dogg.
Dogecoin is also seeing increased support from major companies, including Conagra Brands Inc. (NYSE:CAG) and candy bar Snickers.
However, the Shiba Inu-themed cryptocurrency has lost 1.2% during the past 24 hours and is trading at $0.6330 at press time. Cryptocurrencies such as Bitcoin, Ethereum (ETH) and Binance Coin (BNB) also rallied on Wednesday, reflecting the renewed excitement surrounding the digital assets.
Meanwhile, shares of Coinbase fell on Wednesday, extending losses to a third straight session. The cryptocurrency exchange made its debut on the Nasdaq stock exchange last month.
Price Action: Coinbase Global shares closed 2.7% lower in Wednesday’s regular trading session at $273.00 and further declined 0.2% in the after-hours session to $272.44.
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