World-renowned crypto trading platform Coinbase took a hit last Tuesday as several crypto projects dropped. Even Bitcoin, the most prominent cryptocurrency in terms of volume, plunged about 7.8%, with its current value now being approximately $47,873.
Bitcoin wasn’t the only crypto that slumped, though. Ethereum also decreased by 7.6%, Terra decreased by 10.3%, and Cardano fell by 9.9%.
Bitcoin investors were delighted when the asset reached a new all-time high in November of $68,990.90. However, their cause for celebration was only temporary. Since then, the cryptocurrency has dropped about 30%, sitting at the $50,000 mark. Crypto investors are now feeling anxious, especially since liquidity is much tighter and interest rates are increasing. Not only that, but regulatory stances are constantly changing as of late.
Coinbase Stock Falls
As for Coinbase, the platform dived down by 6.6% to $261.71 last Tuesday. In April, the stock debuted in a direct listing, which received a $250 reference price from Nasdaq. However, by the third quarter, the platform’s revenue and profits didn’t reach the expectations of Wall Street.
Coinbase blamed lower volatility, as having higher volatility means higher trading volume and transaction fee revenue. If the trading volume decreases and not as many people are active anymore, Coinbase’s fees are also impacted negatively.
Nevertheless, analysts are still confident that digital assets are an excellent investment opportunity in the future. Coinbase was even included in Oppenheimer’s top picks for the upcoming new year. In this last, analysts gave the platform a price target of $444.
Owen Lau states that for anyone interested in “getting exposure to digital assets,” Coinbase would be a good option.
