Shares of Coinbase Global Inc. plunged to fresh lows recently, as Wall Street investors continued to get out of high-flying technology stocks. In the interim, the digital asset market reached a record valuation around two and a half trillion dollars.
The crypto exchange’s stock bottomed at 255.15 USD, where it was in danger of getting below the reference price of 250 USD on the eve of its public listing on 14th April. Subsequent to a remarkable launch, the stocks of the crypto exchange have been on a downward path. The firm now has a total market cap of approximately 48 Billion USD, which is nearly half of the hundred billion dollars top it attained last month.
The director of research at FBB Capital Partners, Mike Bailey told Bloomberg that the selloff of Coinbase was primarily because of the formation of a “mini-bubble” that is now in the process of bursting. He mentioned, “We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers.”
Notably, the aforementioned selloff in the past couple of days mirrors a comparable downfall in the tech-heavy Nasdaq Composite Index. Subsequent to closing at a record high of 14,138.78 on 26th Apr, the Nasdaq Composite has dropped by more than over 4 percent.
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