Reddit went public yesterday, March 21, 2024.
After 20 years in business, the social platform, which priced its IPO at $34 a share, debuted Thursday afternoon at $47 a share. The going price soon climbed even higher, but still oscillated some. As of around 2:30 p.m. ET, shares for the self-anointed “front page of the internet” were up more than 40%.
How did it affect its correlated token, MOON?
The results
Following from our last article, MOON performance rose by 75.55% in the last 7 days while writing this article.
While yesterday, March 21st, was the IPO date, the coin fell by 11.27%, which sums up the fact that the prices are not correlative by 100%.
Other alt-coins related to Reddit
BRICK, another Reddit related coin, witnessed a 60 percent price jump within the same timeframe, currently trading at around 12 cents.
This smaller-scale altcoin now boasts a market cap close to $7.8 million, with its daily trading volume hovering around $500k.
What’s next?
The correlation between the stock exchange and the crypto exchange, mainly the bitcoin price, has shown correlation in the past.
This relationship has garnered significant interest, revealing a complex interplay influenced by investor sentiment, economic indicators, and global events.
Studies have shown a variable correlation that can range from weak to moderately positive, depending on the time frame and market conditions. For instance, during periods of market volatility or economic uncertainty, investors may turn to Bitcoin as a digital gold, leading to a positive correlation.
Conversely, in stable economic times, Bitcoin may move independently of traditional stock markets.
Data from 2020 highlighted a notable instance where the correlation coefficient between Bitcoin and the S&P 500 index briefly surged above 0.5, indicating a moderately positive correlation, especially during the initial stages of the COVID-19 pandemic.
This suggests that while Bitcoin operates in a distinct market, its price can be influenced by broader economic trends and investor behavior mirrored on traditional stock exchanges.
Conclusion
In bullish times on both the stock exchanges and cryptocurrencies, a major event like a big IPO can boost prices even higher.
There should be a correlation, like a coin that is related to the company; and when that takes place, even though the prices were depicted prior to the event itself, we can see a boost in income funds lifting the prices higher.
