When SoFi (SOFI) rose to $24 last month to match the June high, the cryptocurrency price bust sent the fintech firm lower. SoFi offers cryptocurrency storage. It is not yet a major part of the business.
Markets treat SoFi as if crypto prices will matter for its growth. The fintech firm has higher costs ahead as it builds customer support levels. Near-term costs will grow faster than revenue. In addition, the stock signaled a “double peak” on the chart. Selling momentum may outweigh the prospects of speculating on a short-term rebound.
Bitcoin’s drop to below $50,000 in the last week also spooked Voyager Digital (VYGVF) investors. Just as SoFi peaked, VYGVF traded as high as $20 before plunging. The crypto platform attracted investors after the Dallas Mavericks promoted Voyager’s platform for one weekend. Since then, sellers sold the stock.
Crypto investors may guess when those two stocks will bottom. This is a fruitless exercise. Bitcoin prices fluctuate daily, which influences SOFI and Voyager stock prices.
Fortunately, the Bitcoin volatility will encourage crypto investors to buy and sell. The higher transaction volumes and holding amounts benefit platforms. Investors should use the selling in the two stocks to consider starting a position.
Consider planning an exit price before buying either stock. When they reach the target price, take a profit.
