Shares of Coinbase Global Inc. were crashing to one of their steepest declines ever on Monday after another cryptocurrency platform’s decision to suspend withdrawals and transfers sparked further concerns in the market. digital assets.
Coinbase’s COIN stock,
was down about 14% in Monday morning trading, after falling 21.6% earlier in the session. The stock was on course for its third-biggest one-day percentage drop on record as it extended its sharp decline since the start of the year, with shares down almost 80% until now in 2022.
Crypto asset prices also fell sharply. BitcoinBTCUSD,
was down 14% on Monday, ethereum ETHUSD,
was down 16%, and Litecoin LTCUSD,
was down 15%.
Read: Bitcoin tumbles from $24,000 in crypto crash. This graph shows how much worse a sell could be.
The sharp declines in stocks come after crypto lending platform Celsius Networks LLC said on Sunday it would suspend withdrawals, trades and transfers between accounts. The company cited “extreme market conditions” and said in a blog post that the move would “put Celsius in a better position to meet, over time, its withdrawal obligations.”
Elsewhere, crypto exchange Binance paused bitcoin withdrawals on Monday morning.
Read: After petition for leadership changes, Coinbase CEO tells workers to quit if they don’t believe in top leaders
The moves come in the wake of Consensus, a major cryptocurrency conference that ended on Sunday. Christopher Brendler, a DA Davidson analyst who covers crypto miners, struck a cautious tone when recapping the event.
“Unfortunately, we came away significantly more bearish (as) the sharp decline in liquidity has stressed even the strongest players,” he wrote. “While large public companies are much better positioned and could still benefit from forced consolidation, the weekend decline in BTC and the spike in network hashrate exacerbate what is already a very difficult situation.”
Brendler’s coverage includes crypto mining companies such as Core Scientific Inc. CORZ,
Riot Blockchain Inc. RIOT,
and Marathon Digital Holdings Inc. MARA,
all of which are down more than 11% on Monday.
Watch: ‘I Thought It Was A Bad Joke’: They’ve Gave Up Other Job Offers To Work For Coinbase And Are Now Unemployed
He speculated that Block Inc. SQ,
the company formerly known as Square, could be “an excellent choice” for a merger with a mining company, although he acknowledged that chief executive Jack Dorsey “is more interested in increasing decentralization rather than consolidating minors, so any deal would likely be small and more of a learning experience.
Block, which allows users of its Cash App mobile wallet to trade bitcoin, saw its own stock plummet nearly 10% on Monday. Baird analyst David Koning wrote on Monday that he expects Block’s bitcoin gross profit to be around 3% of the company’s gross profit this year, up from around 5% last year. last year.
“We do not believe that any of our businesses have significant exposure to cryptocurrency volumes,” he wrote of his payments coverage universe, which includes Block, Mastercard Inc. MA,
and Visa Inc. V,