TL;DR Breakdown
• The exchange shows that its shares lost over 8 percent in value.
• Coinbase shares lost a quarter of their value since Thursday with a total loss of 1.4 trillion.
The cryptocurrency market crash has affected Coinbase, one of the major U.S. listed exchanges. Exchange shares have reportedly dropped nearly 8 percent, simultaneously with a loss of 15 percent of the Bitcoin price in the first month of the year 2022.
The exchange is experiencing a high loss where its funds on the stock are trading at $188 per share. CoinMarketCap indicates that Bitcoin has lost over 5 percent of its value in the last 24 hours, trading at $33,542.
Coinbase suffers from a crypto crash
Coinbase, an excellent cryptocurrency exchange listed since 2021 on the stock market, has experienced a loss in the price of its shares. Like many crypto companies, the exchange is suffering from the crypto crash.
The crypto company could be considering expanding into new territories, perhaps towards the NFTs market. However, after going through almost three months of declines in the price of cryptocurrencies, the exchange may not rush into launching an NFT marketplace.
The cryptocurrency landscape looks unfavorable, and the losses have reached one billion dollars since November. Bitcoin is trading at $33K with a dramatic loss in value in the last week. Ether dropped to $2,270 with a 30 percent loss in the last seven days.
Causes of the downtrend in cryptocurrencies
After seeing Coinbase share loss, the crypto investor might wonder why the market continues the bearish streak. It is to be remembered that the crypto market has lost value since November 2021 after Bitcoin hit its ATH above $66000.
Crypto researchers believe that the market lost value after the central bank of Russia banned crypto mining. To this measure is added the Kazakhstan prohibition towards Bitcoin mining. However, the losses in cryptocurrencies could also adhere to new US laws where regulators seek to sell volatile assets like Bitcoin.
If the crypto market is affected by the policies of the United States, this will put Coinbase at the center of the problem since it’s one of the leading crypto exchanges in the US. This position makes its losses in shares more relevant compared to other exchanges
While the Coinbase stock has plunged in value by over 8 percent in the last few hours, competing exchanges like Robinhood have lost over 60 percent in the last six months.
Source: https://www.cryptopolitan.com/coinbase-shares-crash/