Coinbase slips more than 11% as bitcoin plunges

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The logo of Coinbase Global Inc, the largest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others in Times Square in New York, U.S., April 14, 2021.

Coinbase shares closed down 11.4% on Monday.

Coinbase makes a commission when individuals trade digital currencies. Monday’s move gives the impression of being tethered to the plummeting crypto market.

Bitcoin is currently trading at least since December 2020, below $24,000, as reported by information from CoinDesk. Over $200 billion has been cleared from the digital currency market since the start of the week-end.

Crypto lender Celsius could be partly responsible for the drop in the cost of cash advances. The organization said on Monday it was halting all withdrawals, transactions and movement between accounts due to “scandalous economic situations”. Binance also briefly halted bitcoin withdrawals on Monday, but said the pick was a direct result of a “stuck trade causing a buildup.”

Coinbase stock is down 76% year-to-date, after May first-quarter earnings showed revenue fell 27% year-over-year as usage was decreasing. “We accept that these economic situations are not super sustainable and we remain focused on the long term,” the organization said at the time.

Portions of Coinbase (NASDAQ: COIN) are down more than 21% at the New York open after the digital currency market fell to lows north of a year and a half.

The absolute crypto market cap slipped below $1 trillion footprints on Monday, losing more than $200 billion in market cap since Friday.

“Since November 2021, sentiment has changed dramatically given the Fed’s rate hike and board expansion. We’re also looking at possibly a slowdown given that the Fed may finally have to manage the interesting side to oversee the expansion,” Vijay Ayyar, vice president of corporate and global turnaround events at Crypto Trade Luno, told CNBC.

“It focuses on the fact that the market hasn’t fully doubled and unless the Fed can ease a load, we’re probably not going to see a bullish comeback.”

Ayyar added that he sees “much lower bitcoin costs over the next few years.”

The crypto climate soured after a major crypto lending specialist, Celsius Network, froze withdrawals and moved referring to “outrageous” terms.

“While expansion ends up being a much tougher rival to beat than expected, Bitcoin and Ether continue to get extreme ring bloat,” Susannah Streeter, senior venture capital and markets expert at Hargreaves, told Reuters. Lansdown.

“They are the main survivors of the dangerous resource drain as backers worry about skyrocketing procurement costs across the globe.”

Bitcoin price is currently trading below $24,000 after printing the 18-month low at $23,333, as reported by Coinbase.

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