The largest crypto exchange in the US has fallen below $10 billion

The largest crypto exchange in the US has fallen below $10 billion
The largest crypto exchange in the US has fallen below $10 billion

winter eCrypto The ongoing and recent upheaval in the market, which culminated in the bankruptcy of the FTX stock exchange headed by Sam Bankman-Fried, continues to darken: shares Coinbase – the largest crypto exchange in the US – plunged 9% percent on Monday this week to a market value below $10 billion, for the first time since it went public last year.

● The crisis of the FTX exchange is not related to the crypto market but to greed Interpretation

The performance of the stock on Monday comes in continuation of the challenging year that has passed for the stock Coinbase, which has lost about 84% so far in 2022 amid the so-called crypto winter, characterized by double-digit declines in digital assets. Just a year ago, the market value of Coinbase reached a peak of 76.9 billion dollars.

No more bankruptcy

The bankruptcy of leading crypto exchange FTX earlier this month shook the winter crypto market like rolling thunder. Bank of America analyst Jason Kupferberg is confident that Coinbase is “no longer FTX,” but is still wary of the cryptocurrency exchange.

Kupferberg downgraded Coinbase stock to neutral from buy on Friday, writing that while he is confident there is no risk of bankruptcy for the exchange, the lingering effect of the FTX collapse could affect the perception of both regulators and crypto investors.

“We think Coinbase is likely to face new headwinds in the near/medium term due to the recent collapse of rival crypto exchange FTX,” Kupferberg wrote on Friday, adding that he sees an “even less certain” outlook for Coinbase going forward. While Kupferberg noted a surge in trading volumes following the FTX crash and the potential for Coinbase to gain market share gains in the long term, he is concerned about “reduced confidence in the crypto market, which will likely reduce overall trading activity.”

“Following the FTX news the trading volume has increased, but we expect this to be transient as some users sell their assets to leave crypto entirely and others move their crypto assets off the exchange into cold storage,” Kupferberg continued.

Kupferberg also noted that while he previously thought 2023 might bring “some degree of regulatory clarity to crypto,” that clarity could be delayed following recent events.

The article is Hebrew

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