Alibaba’s US IPO May Have Crashed the Bitcoin Price

David Parker 19/09/2014

Alibaba’s IPO (Initial Public Offering) is set to take place today at 11.00 AM ET on NYSE (New York Stock Exchange) under the ticker BABA. The IPO of Alibaba will become the largest IPO of a company in the United States, ever. Alibaba Group will price its shares at 68 USD, which makes their company worth 21.8 billion dollars.

The Bitcoin price has plummeted by more than $60 or 12.5% this week. Just yesterday the Bitcoin price went from 450 USD per bitcoin to $407. The price has not been this low since April 2014, after a long decline from the massive spike during the Chinese fall where one bitcoin was worth almost 1200 USD. View the chart below, the intersection shows April 8th to 10th 2014.

As Ian Worrall from Sembro Development told us:

The Alibaba IPO has generated a lot of noise in the financial markets as the IPO date has drawn closer… The largest Bitcoin exchange by volume, BTC China, which covers an average of 38% of the total Bitcoin transactions has averaged around 19,000 Bitcoin per day in trades. …the volume is currently up over 52% at 29,400 Bitcoin and rising.

He then continues to say:

On top of increased volume on Chinese exchanges, the volume on the European exchange platform Bitstamp is up well over 100% today at around 21,400 Bitcoin compared to the monthly average of 9,200 Bitcoin. This is right after many of the leading German analysts from renowned investment banks have indicated that Alibaba is a strong buy… Based on this information, we have concluded that many large Bitcoin investors from China and Europe have exited their positions in Bitcoin to put into the Alibaba IPO.

via Alibaba’s US IPO May Have Crashed the Bitcoin Price.

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