Crypto Market Crashes Worth $1 Trillion; Coinbase Shares Drop

Coinbase (NASDAQ: COIN), a cryptocurrency trading platform, has seen its shares plummet, with technology equities and cryptocurrencies losing more than (-23 percent) in January 2022. The renowned digital crypto trading software platform has exploded in popularity and value in tandem with the rise in cryptocurrency values, reports

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The word is associated with cryptocurrency markets, which are exciting when they are rising but painful when they fall. Through its Coinbase Ventures investment arm, the company has over $6 billion in capital and invests in projects such as NFTs, web 3.0, and crypto lending. Coinbase’s institutional customer base has surpassed 7,000 businesses, in addition to retail consumers.

Because crypto markets run 24 hours a day, 7 days a week, the Company collects spread and commission revenues around the clock. Crypto users are expected to exceed one billion in the next three years, according to the World Bank. Investors looking for a way to get a piece of the world’s most popular cryptocurrency exchange should keep an eye out for opportunistic pullbacks in Coinbase stock.

Coinbase, the publicly traded exchange, is being hammered by the ongoing bitcoin meltdown.

The 13% Plunge

After a 13 percent plunge on Friday, Coinbase’s stock was down roughly 8% in pre-market trade Monday morning. The company has lost roughly a quarter of its value since Thursday, and it has already fallen below its IPO price of $250 per share (the Nasdaq listing occurred last April) three weeks ago.

Although the American company is broadening with ambitions to open an NFT marketplace, it is first and foremost a crypto exchange, with its fortunes related to those of the broader crypto ecosystem. And the scene is currently unappealing.

Since November’s highs, the aggregate crypto market’s worth has been wiped out by over $1 trillion. Bitcoin’s value has declined 20% in the last week to $33,550—roughly where it was a year ago—while Ethereum’s token has plunged 30% to $2,270. (For that keeping score, Dogecoin is down 27% from a week ago.)

The Latest Crash

The latest escalation of the crash appears to be in part due to the Russian central bank’s request last week for a ban on cryptocurrency use and “mining” in the nation. This was significant because Russia is a key crypto mining hub, especially after China’s prohibition on the industry.

The collapse, on the other hand, appears to be reflecting broader market trends, particularly Nasdaq’s recent slide into the correction zone. Many investors are selling risky assets such as Bitcoin as the US Federal Reserve tightens its policy in the face of inflation.