Here's Why Coinbase Stock Fell 81% in the First Half of 2022
Shares of the large crypto exchange Coinbase (NASDAQ: COIN) plummeted more than 81% in the first six months of 2022, according to data provided by S&P Global Market Intelligence. The main reasons for the huge decline are falling cryptocurrency prices and less crypto-trading activity.
Being the largest U.S. crypto exchange, Coinbase makes the bulk of its revenue from commissions on retail trades, so naturally, the stock has a good amount of correlation to the price and movement of large cryptocurrencies like Bitcoin (CRYPTO: BTC).
The price of Bitcoin fell roughly 58% in the first half of the year as inflation set in and the Federal Reserve rapidly raised its benchmark overnight lending rate, the federal funds rate. This usually does not bode well for riskier assets because it makes safer assets yield more.
Source Fool.com
