Coinbase Global Inc. shares, competitor cryptocurrency The stock market fell to an all-time low as investors worried about how far the problems from FTX’s bankruptcy could spread.
Coinbase Shares Have Dropped More Than 80 Percent YTD
Shares of the largest US crypto exchange fell 10.3% to $40.61 on Monday, causing other crypto-related shares to drop. Shares of Coinbase have dropped more than 80% since the start of the year, while the largest cryptocurrency Bitcoin has lost 65%.
Coinbase shares hit a high of $429.54 in April 2021 after first listing on the Nasdaq.
The drop is in line with the decline in digital asset prices, which fell after the collapse of Sam Bankman-Fried’s crypto empire.
Bitcoin fell 4.1% to $15,589 on Monday, just below the two-year low it reached on Nov. The token has lost nearly 75% of its value from the record high of $69,000 reached about a year ago. Also on Monday, Ethereum fell as much as 5.5%.
Marathon Digital Holdings Inc, MicroStrategy Inc, Riot Blockchain Inc. and Core Scientific Inc. Shares fell as much as 10%.
Analysts Speaking to Bloomberg Predicted About Bitcoin and Coinbase
Ed Moya, senior market analyst at Oanda, wrote, “If the $15,500 level is broken for Bitcoin, there isn’t much support to the $13,500 level and then the psychological $10,000 level.”
On Friday, Bank of America downgraded Coinbase from “buy” to neutral.
Analyst Jason Kupferberg had this to say about Coinbase in a note:
“We are confident that Coinbase is not a new FTX. However, that does not exempt them from the wider decline in the cryptocurrency ecosystem.”
Meanwhile, Cathie Wood’s Ark Investment Management funds have purchased more than 1.3 million shares of Coinbase since the beginning of this month.
*Not investment advice.
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