Coinbase Experiences Toughest Week Of The Year Amidst Crypto Market Downturns
Investors in crypto stocks were hit particularly hard. Schwab Asset Management’s crypto-themed ETF (STCE), which includes companies like MicroStrategy, Marathon Digital, Riot Blockchain, and Coinbase, fell 11%. Coinbase saw a dramatic 20% drop, reaching its lowest point since February.
Cryptocurrency exchange Coinbase experienced its worst week of the year as the crypto market suffered significant losses. The decline in crypto stocks was led by a sharp 20% drop in Marathon Digital, a major bitcoin miner, and a broad decrease in a basket of crypto-related equities, which fell to its lowest since February.
The industry-wide selloff was driven by growing concerns about the U.S. economy and a broader decline in prices for bitcoin, ether, and other risky assets. The tech-heavy Nasdaq index also slid 5.8% for the week, marking its worst performance since January 2022.
Bitcoin fell to its lowest level since February, slipping 4% in the past 24 hours to around $54,000. Ether, the second-largest cryptocurrency, plunged 12% to approximately $2,200. The total market capitalization of crypto has dropped nearly 30% from its 2024 peak of $2.67 trillion, now standing at $1.9 trillion. Altcoins like Solana’s SOL, XRP, and Cardano’s ADA also experienced declines of more than 8% over the past week.
The U.S. spot bitcoin exchange-traded funds (ETFs) had their worst day in over four months, with over $287 million withdrawn collectively following the report. Additionally, August payrolls fell short of expectations, signaling a potential cooling in the labor market.
Investors in crypto stocks were hit particularly hard. Schwab Asset Management’s crypto-themed ETF (STCE), which includes companies like MicroStrategy, Marathon Digital, Riot Blockchain, and Coinbase, fell 11%. Coinbase saw a dramatic 20% drop, reaching its lowest point since February. MicroStrategy, known for its significant bitcoin holdings, dropped 14%, adding to the 12% slide from the previous week.
JPMorgan Chase analysts reported increased trading volumes in August, up 8% from the previous month. Looking ahead, much attention is focused on the Federal Reserve’s upcoming meeting on September 17-18, where a potential interest rate cut could impact risky assets like cryptocurrencies. Analysts expect a reduction of either 0.25% or 0.5% from the current rate of 5.25%-5.5%.
