- Coinbase shares on Monday hit their lowest level since making their public trading debut in April.
- The stock fell as much as 8% on Monday as a sell-off in bitcoin led to weakness across assorted cryptocurrencies.
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Risk aversion appeared to hit the crypto market broadly as bitcoin slumped to a February low and other stocks exposed to bitcoin lost ground. Losses for bitcoin and other cryptocurrencies pulled the valuation of the global cryptocurrencies market down by much as $50 billion during Monday’s session, according to CoinMarketCap.
Coinbase shares fell as much as 8%, to $238.25, marking the first time they had dropped below the reference price of $250 set before the stock’s public-market debut in April. Actual trading opened at $381 on April 14.
Coinbase’s stock has largely pulled back since they surged to $429.54 in their first day of trading. Their arrival marked the first cryptocurrency exchange to go public. Bitcoin was also in the spotlight on that day as it hit a record above $64,000.
But bitcoin on Monday sank below $43,000 after Tesla CEO Elon Musk suggested the electric car maker might – or had sold – its holdings in the cryptocurrency. Bitcoin pared its loss after Musk clarified that Tesla still held its bitcoin stake. However, bitcoin’s price still suffered as did those of other cryptocurrencies including a 6% decline in Ether, the token of the Ethereum blockchain, lost 5%, Cardano-ADA fell 10%, and Dogecoin shed about 4%.
The value of the global cryptocurrency market lost as much as 23% over the past five days since reaching its most recent market-cap high of $2.56 trillion.
Coinbase last week reported first-quarter adjusted earnings of $3.05 per on revenue of $1.8 billion that met expectations. Coinbase did say it planned to start offering dogecoin for trading in six to eight weeks.