BitGo's debt in the market: Sharp drop marks difficult debut of crypto custodian

BitGo’s debut story on the New York Stock Exchange started off promising, but it quickly rewrote a less glorious chapter for IPO operations in the crypto sector. After opening at $18 per share, the company’s shares plunged 12% the next day to end Friday’s trading at $16.53 — a drop that signals not only immediate difficulties but also deeper shifts in investor appetite for the industry.

From Peak to Retreat: Understanding Market Volatility

BitGo’s journey in the market started with optimism. Shares soared to $24 after the IPO, suggesting robust early demand. However, reality quickly imposed itself. The pullback to $16.53 didn’t just erase that gain — it put the stock below its opening price, a worrying sign for a new listing that has been promoted as the first major crypto trade in 2026.

The negative performance contrasts with the scenario of 2025, when companies such as Circle, Bullish and Gemini conquered space in the capital market. The $2 billion IPO of BitGo, which offers custody and security services for digital assets, represented a renewed bet on the sector. But the declines of the past few days suggest that investors may be rethinking that confidence.

The crypto landscape in retreat: Bitcoin and company

BitGo’s crash does not occur in isolation. Bitcoin, which ended the previous week near $95,000, slid to $90,000, reflecting widespread pressure in the market. Even so, not all assets linked to the sector fall at the same speed.

Companies such as Galaxy Digital rose 3%, while Riot Platforms also advanced in the same proportion. Strategy (MSTR) posted a 2% gain, and Hut 8 added 7% to its value. These moves suggest that despite the macro difficulties, there are segments of the crypto market that continue to find buyers — particularly those with a focus on mining and asset management.

When gold shines and cryptocurrencies disappear

A curious phenomenon emerges when we compare the behavior of cryptocurrencies with the precious metals market. Gold soared above $5,500 per ounce, a move that sparked a jump in notional value of about $1.6 trillion in a single day. Sentiment indicators such as JM Bullion’s Fear and Greed Index point to extreme optimism among metals investors.

This contrast is revealing. While narratives about “real assets” circulate in the markets, investors seeking stores of value have opted for physical gold and silver instead of digital tokens. Bitcoin, despite its proponents arguing that it is a comparable asset, continues to trade as a high-volatility instrument — a reality that BitGo’s IPO reinforces.

What BitGo debit says about the market

The crypto custodian’s drop on the second day of trading is more than a number on a spreadsheet. It signals institutional hesitation, changing sentiment and a reassessment of what the role of cryptocurrencies actually is in diversified portfolios. Meanwhile, the market continues to rewrite its narratives — and not always in favor of those who bet on a bullish crypto future.