Coinbase Global (NASDAQ: COIN) stock price lost nearly $7 in its recent trading session and noted a 12% price decline. On Tuesday, June 6th, when the Securities and Exchange Commission (SEC) charged the crypto platform, its share price began to decline. The SEC found that the crypto platform operated as an unregistered exchange in the U.S. and failed to provide adequate safeguards under U.S. regulatory scrutiny.
The crypto platform has a market cap of nearly $12.10 Billion, while the total revenue for Q1 2023 is $772.53 Million. It is 22.80% higher than the previous quarter, and the net income of Q1 23 is $-78.90 Million.
COIN Stock Price Analysis
On Tuesday, the stock price closed at $51.61 and the decline was nearly 12.09%. The opening price of the stock was noted at $47.10, while the high was at $52.38 and the low was at $46.43. Meanwhile, the weekly drop that the stock has experienced was almost over 14%. On the other hand, the year-to-date (YTD) price was 41% up from the recent closing of COIN stock.
As visible in the above price chart, the stock price was trading nearly to its 100-day EMA, which lost the investor’s confidence on Tuesday morning. The stock price dropped from approximately $59.00 to around $50.00. However, the price drop still showed the dominance of bears in the market with bullish views as seen in the chart.
It can be seen that the 24-hour trading volume that the stock experienced yesterday was more compared to its trading volume on its recent quarterly report day. Moreover, the RSI that previously surged in the upside movement, started following a downside track. Furthermore, it also indicates that the stock price is heading toward the oversold region.
The Role of SEC in the Crypto Market
It is normal to expect a slight drop in the stock price when the SEC takes action against a crypto platform. It also indicates that the crypto market may face more hurdles in the upcoming time. But the investors still have some faith left in the crypto trading platform.
The @SECGov is weaponizing their role to kill an industry. Allowing a company to list publicly and then stonewalling their attempts to register is indefensible. @GaryGensler, expect to hear from Congress.https://t.co/GdprSW1Yns
— Senator Bill Hagerty (@SenatorHagerty) June 6, 2023
In addition, the CEO of Coinbase, Brian Armstrong, also mentioned in his recent tweet about the U.S. regulators. As he retweeted Senator Bill Hagerty’s tweet, in which the senator wrote about the role of the SEC. As per the tweet, the U.S. regulator is “weaponizing their role to kill an industry.” Sen. Bill generally made positive statements regarding cryptocurrency.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/07/coin-stock-price-losing-investors-trust-dropped-over-10/