Cryptocurrency prices resumed their slump, hurting Coinbase and other equities.Read MoreFeedzy
Shares of Coinbase Global (COIN) fell more than 7% Wednesday, lagging crypto-exposed peers as the price of Bitcoin (BTC) and Ethereum (ETH) fell over 6% and 8%, respectively, and Binance.US said it will introduce zero-fee trading for bitcoin.
Other crypto-exposed stocks, including Galaxy Digital (GLXY) and MicroStrategy (MSTR), held up, with Galaxy adding 0.6% in Toronto, and MSTR losing 1%. Crypto miners fell. Cipher Mining (CIFR), Hive Blockchain (HIVE), Hut 8 (HUT) and Marathon Digital (MARA) all dropped at least 3%.
The race to offer customers little or no fees on trading continues and could add to competitive pressures for exchanges. Binance.US said Wednesday it will offer zero-fee bitcoin trading on its platform as it seeks to attract more users.
Coinbase will continue to face headwinds in the current crypto downturn, especially in light of Celsius and Babel Finance’s struggles, Mark Palmer, an equity research analyst at BTIG told clients in a note Wednesday. Palmer sees Coinbase being able to weather the storm given its larger size and being well capitalized.
“While we are not at all dismissive of the impact of the current crypto market downturn, we also believe any notion that COIN would be unable to survive this latest challenge is misguided in light of the facts on the ground,” Palmer wrote. He reiterated a buy recommendation and lowered his price target on Coinbase to $290 from $380.
Meanwhile, Mizuho equity research analyst Dan Dolev said he saw potential signs of “crypto fatigue” in trading patterns.
“COIN volumes appear to surge during sell-offs, but fail to bounce back during brief rallies,” Dolev said in a note to clients. “As evidence, average daily trading volume on the COIN platform on Bitcoin down-days was 15% higher than volumes on Bitcoin up-days. In recent months, however, down-day volumes are 42% higher than up-days, or nearly 3x vs. the prior ratio.” Dolev has a neutral rating on COIN with a $45 price target.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Point72, the $34 billion hedge fund of billionaire and owner of the New York Mets,…
Recent data from Santiment indicates a noticeable decrease in Bitcoin whale activity, reaching the lowest…
Rusty Russell, lead Lightning developer for Blockstream, is spearheading an ambitious initiative known as the…
The CoinDesk 20 Index is higher by more than 4% over the past 24 hours…
Even after the upswing mid-this week, Bitcoin prices remain wavy, considering price action in lower…
Morgan Stanley was the owner of $269.9 million of Grayscale’s Bitcoin Trust (GBTC) as of…