Crypto exchange Coinbase (COIN) shares fell to their lowest prices since the company went public in April 2021.
The stock of Coinbase fell 8% on Monday toward the end of trading in New York as investors dialed back their exposure to crypto risk due to the FTX failure.
Coinbase Stocks Price
A new all-time low was reached by cryptocurrency exchange Coinbase Monday, when its stock price fell to $40.61.
Despite a record-high bitcoin (BTC) price near $69,000 in November 2021, the value of crypto markets has fallen since then, along with Coinbase’s stock.
Even though Coinbase is a leading exchange and has been around for a long time, its stock has fallen 87% over the past year.
According to CoinGecko data, both Bitcoin and Ethereum fell in value in a day, with Bitcoin falling 5.5% to $15,665 and Ethereum falling 8.2% to $1,081.
The cause behind the drop
The struggles of the exchange in recent months may illustrate broader “crypto contagion” theory-which suggests that the collapse of one company will cause ripple effects in the entire industry.
Stock markets have also been affecting cryptocurrency, which is also on the decline.
There is also blame for Monday’s market slump being laid at the feet of remarks made by San Francisco Federal Reserve President Mary Daly. During his speech to the Orange County Business Council Monday, Daly explained that interest rates are “adjusting too little will leave inflation too high. But adjusting too much could lead to an unnecessarily painful downturn.”
Meanwhile, Edward Moya, Oanda’s senior market analyst said, “Coinbase shares can’t catch a break. The major cryptocurrency exchange has yet to convince investors that its share price will stabilize like some of the other top cryptos as investor skepticism about trading on exchanges grows.”