Images of Coinbase and Bitcoin SOPA
Coinbase lost 5.7% Monday in response to a wider sell-off on the stock and crypto markets.
Coinbase shares fell in tandem with sharp drops in prices for nearly all major cryptocurrency coins.
Evergrande's brewing liquidity crisis and US domestic policies are threatening to batter markets.
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Coinbase dropped as high as 5.7% Monday, amid a wider sell-off in crypto and stock market. This was intensified by the news that the crypto exchange would cease offering a loan product following a dispute with the SEC.
Coinbase shares fell to $231.15 Monday, a drop of 3.5% from Friday's closing price at $245.19. The stock closed at $236.53 on Monday, 3.5% lower than the closing price.
Coinbase shares fell in tandem with sharp drops in prices for nearly all major cryptocurrency cryptocurrencies. As the prices of Bitcoin and ether plunged, they dropped as high as 10.4%, 12.9% and 12.9% respectively.
The decline in US stock markets was similar, with many analysts placing the blame on Evergrande's looming liquidity crisis and its implications for China's economy.
Others pointed out that Monday's dip was caused by US domestic policy.
Jamie Cox, of Harris Financial Group, stated that "The Evergrande issue, though large and significant, is not the reason for this selloff." Investors are feeling a bit drained by the Congress' inability to fix the debt ceiling, the uncertainty surrounding policy changes, mistakes in monetary policies, and the countless tax increases that have been proposed.
The company's bonds also fell as Coinbase stock plummeted. They trade at junk levels. As news broke that the company had abandoned a loan product that the SEC threatened to block, the bonds dropped as low as 95.75 Cents per dollar.
Bloomberg reported that Coinbase bonds are among the worst performing newly issued debt.
