Why Coinbase and Other Crypto Stocks Took a Nosedive Today
Shares of Coinbase Global (NASDAQ: COIN) were getting demolished today. The stock was down nearly 12% as of 3:45 p.m. ET on Friday, adding to an absolutely brutal week for it and other companies tied to the crypto market. Along with the crypto exchange, crypto bank Silvergate Capital's (NYSE: SI) shares were also in retreat today (down 12%), as were stocks of top Bitcoin (CRYPTO: BTC) holders like MicroStrategy (NASDAQ: MSTR) (down nearly 16%) and Bitcoin fund Grayscale Bitcoin Trust (OTC: GBTC) (down almost 13%).
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The reason for the sell-off is Bitcoin itself. The top cryptocurrency took a more than 10% spill over the last 24 hours. For companies and funds like MicroStrategy that hold sizable Bitcoin positions on their balance sheet, the reason for their stock dropping is pretty straightforward: Lower Bitcoin value means the company is worth less.
Source Fool.com
