Business

Coinbase drops more than 14% as bitcoin plunges


The logo of Coinbase Global Inc, the largest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and elsewhere at Times Square in New York, U.S., April 14, 2021.

Shannon Stapleton | Reuters

Coinbase shares fell more than 14% on Monday morning. Shares were down more than 21% before the market opened.

Coinbase makes a commission when people buy and sell cryptocurrencies. Monday’s move appears to be tied to a collapsing crypto market.

Bitcoin is currently trading at its lowest since December 2020, below $24,000, according to CoinDesk data. More than $200 billion has been wiped off the crypto market since the beginning of the week.

Cryptocurrency lender Celsius may be partly to blame for the cryptocurrency’s price drop. The company said on Monday that it would be suspending all withdrawals, swaps and transfers between accounts due to “extreme market conditions”. Binance also suspends bitcoin withdrawals on Monday but said the selection was due to “stuck transactions causing backlogs”

Coinbase shares are down 76% year-to-date, after first quarter earnings in May showed a 27% drop in revenue year-on-year due to reduced usage. “We believe these market conditions are not permanent and we remain focused on the long-term,” the company said at the time.

CNBC’s Ryan Brown and Arjun Kharpal contributed to this report.


Subscribe to CNBC on YouTube.



Source link

news7g

News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button