The 'Coinbase Effect' Turns Bearish After BAT Prices Drop Post-Listing

Published on by Coindesk | Published on

Trading for BAT officially went live yesterday on Coinbase, the largest cryptocurrency exchange in the U.S., a move that followed the token's inclusion on Coinbase's professional platform.

The idea of listing BAT among four other cryptocurrencies on July 13, triggering a 27 percent jump in its price at the time.

As of press time, BAT is trading at around $0.30, representing a 23 percent decline from than yesterday's high of $0.39.

As can be seen in the above chart, the price of BAT broke above its upper Bollinger Band and hit a three-month high of $0.39 following the Coinbase listing news, though it quickly retreated.

It's worth noting BAT's bearish reaction from the market, following its listing on Coinbase, is not the first time a similar situation has taken place.

ZRX became the most recent addition to Coinbase when it was listed on October 16th. Its price rose to an 8-week high of $1.09 the next day, but it began a steep descent thereafter.

Today, ZRX is trading at a price of $0.72 on the Binance exchange, representing a 33 percent drop from its post-Coinbase listing high.

The cryptocurrency hit a high of $15.09 on Aug.16, the day of its listing on Coinbase, but just a week later it was trading at a 20 percent lower price.

Today, ETC is trading on Binance at a price of about $9.55, marking a 37 percent drop from its Aug. 16 high.

BAT looks to be another victim of the "Buy the rumor, sell the news" trading strategy following its listing on Coinbase.

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