This past week has not been great for crypto industry. Bitcoin, Ethereum and other altcoins have lost significant amount(the biggest drop as cryptocurrencies ). There is general unrest among the holders of crypto. And experts who previously claim that BTC will hit the $100000 mark, are shock as well. Recently, shares of Coinbase Global Inc. have plummeted by as much as 15.7% on Friday. Coinbase Global hit hard during the cryptocurrency selloff and it seems that it doesn’t stop here.
Coinbase Global Inc. is the largest United States trading platform dealing in cryptocurrency. It has the biggest ever single session decline. Which saw it reach to its lowest level IPO since April last year. The trading platform fell as much as 15.7% while Bitcoin lost around 9% in this time.
Matt Maley, chief market strategist for Miller Tabak + Co., said. “The correlation between COIN and Bitcoin remains very strong,” while referring to Coinbase’s ticker.
Coinbase Global Inc and Bitcoin
It is common for companies to see the values of its shares rise and fall with the popularity of the stuff that trades on them. We have seen stock prices of tech companies like Zoom, Tesla, Facebook and Apple rising during the past two years, due to the popularity of these brands among the common people.
Coinbase is the largest trading platform in the US and it has seen its fair share of popularity. Coinbase’s ticker moves have often matched nearly perfectly to that of Bitcoin. The drop was not only witnessed by Coinbase, Robinhood Markets Inc., a platform trading popular with retail traders, dropped nearly 7% during Friday’s session and has fallen to its lowest since its July 2021 public debut.
Cryptocurrencies are going through a dark stretch and their values have plummeted in a short span of time. Bitcoin, the largest digital asset by market value, has lost roughly 40% since November last year. All of this is happening in the backdrop of the Federal Reserve looking to further withdraw stimulus from the market and as crypto currencies come under new regulatory measures.
According to Stephane Ouellette, chief executive and co-founder of institutional crypto platform FRNT Financial, “Developments like DeFi and NFTs have stoked the growth expectations for COIN, which was otherwise a mature BTC-and-other-top-coin trading business, so I think it does make sense that this would be trading worse than it has all year.”
What do you think about the recent drop in crypto prices? Will they go down more or rise again? Let us know what you think about in the comments section below.