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How Bad Is the Crypto Market Crash?

How Bad Is the Crypto Market Crash?

No corporation has suffered a bigger hit from the Bitcoin crisis than Coinbase, which has lost billions of dollars. Coinbase, the country’s largest and first publicly traded crypto exchange, has seen its stock price fall 81 per cent this year and has lately revealed intentions to.

Coinbase posted a $430 million first-quarter loss. Hence, several hedge funds have begun to short the stock, implying that Wall Street believes Coinbase’s value will fall much more.

But all is not lost for the exchange, according to analysts. They believe the crypto bubble will rebound more than the current fall shows. Despite its recent problems, they believe Coinbase will survive and eventually thrive in the crypto market.

Coinbase was created in 2012, years before the cryptocurrency boom or the current “crypto winter” hit the United States. It presently has a market capitalization of $13.8 billion, 5,000 employees, and $256 billion in assets on the platform.

Still, one of the reasons Coinbase is hurting right now is because there are fewer individuals transacting on the site. Coinbase generates the majority of its revenue by collecting a 1% charge on each crypto transaction. However, company officials stated in May that transaction volume had decreased. The number of Coinbase monthly users has decreased by 19% since the end of last year. Not only are there fewer transactions on Coinbase, but cryptocurrency prices have fallen to their lowest levels this year.

Conclusion

As growing inflation tightened its grip on the US economy, the price of bitcoin, ethereum, and other key tokens began to decline this spring. With the cost of common commodities like gas and groceries rising, investors began withdrawing funds from hazardous investments such as cryptocurrencies. The price of cryptocurrency sank further as investors sold up their digital assets. Meanwhile, the price of bitcoin, which peaked last November at over $68,000, has dropped 56 per cent since the beginning of the year, trading at roughly $20,250 as of Wednesday.

The post How Bad Is the Crypto Market Crash? appeared first on FinanceBrokerage.

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