The stock price for Gemini Space Station (GEMI) has fallen to a record low of $9.70, marking a dramatic 80% decline from its all-time high. This sharp downturn, which began shortly after its September initial public offering, has erased approximately $2.6 billion in market capitalization, shrinking its value from $3.81 billion to $1.14 billion.

Broad Market Pressures and Sector Weakness

The decline of GEMI, an exchange backed by the Winklevoss Twins, has coincided with a wider crypto market crash that has impacted Bitcoin and other digital assets. Its performance closely mirrors the negative trend seen in companies holding significant Bitcoin reserves, such as Metaplanet and MicroStrategy. Gemini Space Station is the 26th-largest corporate Bitcoin holder, with a treasury of 4,002 coins valued at around $372 million.

This negative sentiment extends to other recently listed crypto-related companies. Circle, Bullish, eToro, and Webull have all experienced significant drops from their peak valuations, suggesting waning investor confidence in the sector. In bear markets, crypto exchanges like Gemini typically see lower trading volumes, which directly impacts revenue.

Financial Health Under Scrutiny

The company’s recent financial report presented a mixed picture. While revenue in the third quarter grew to $50.6 million from $24 million in the same period last year, its net loss also expanded significantly, climbing from $87 million to $160 million. Unlike competitors such as Coinbase, Gemini’s revenue is heavily dependent on transaction fees and lacks substantial income from custody, stablecoin, or subscription services.

These mounting losses raise concerns about the company’s financial stability. With $487 million in cash and an additional $87 million in restricted cash at the end of the quarter, the widening deficit may pressure the company to seek additional capital.

Technical Outlook Suggests Further Downside

A technical analysis of the GEMI two-hour chart reveals a persistent downtrend. The stock is trading within a well-defined descending channel and remains below both the 50-period moving average and the Supertrend indicator. This pattern of consistent lower lows and lower highs points to continued bearish momentum.

Based on these indicators, the outlook for the stock remains negative, with traders potentially targeting the next key support level at $5. This bearish forecast would only be invalidated if the price manages to break decisively above the upper boundary of the descending channel.

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