Why Coinbase Stock Was Plummeting This Week
If cryptocurrencies are dropping sharply in value, you can bet that Coinbase Global (NASDAQ: COIN) is tumbling right along with them. The recent investor exodus from all manner of digital coins and tokens is having a bad knock-on effect on the crypto exchange operator's stock; according to data compiled by S&P Global Market Intelligence it had lost 25% of its value week to date as of Friday before market open.
Now is a bad time to be invested in cryptocurrency and any other assets strongly associated with digital money. Investors are scrambling into assets thought to be safe from economic storms, like the one many believe is about to hit us. Even at the peak of its popularity crypto was always accepted as a high-risk asset class, hence the movement away from it.
An analysis published Thursday by Oppenheimer analyst Owen Lau starkly illustrated the current state of the cryptosphere generally, and Coinbase specifically. According to Lau's research, the total market capitalization of cryptocurrencies fell a dizzying 55% in the second quarter while overall trading volume declined.
Source Fool.com
