The shares of Coinbase Global Inc. they were rising towards one of the biggest falls on Monday after the decision of a different cryptocurrency platform to stop withdrawals and transfers sparked more concerns about the digital asset market.
Coinbase COIN shares,
it fell about 14% in Monday morning trading, after falling to 21.6% at the start of the session. Shares were heading for their third-largest single-day drop in a single day, widening their sharp drop since the year, with a drop in shares of almost 80% so far in 2022.
Cryptographic asset prices also fell sharply. Bitcoin BTCUSD,
fell 14% on Monday, ethereum ETHUSD,
was discounted 16% and litecoin LTCUSD,
Read: Bitcoin falls by $ 24,000 in a cryptocurrency crash. This chart shows how much worse a sale can be.
Strong stock falls come after cryptocurrency platform Celsius Networks LLC said on Sunday that it would pause withdrawals, exchanges and transfers between accounts. The company cited “extreme market conditions” and said in a blog post that the measure “would put Celsius in a better position to meet, over time, its withdrawal obligations.”
Elsewhere, Binance cryptocurrency paused bitcoin withdrawals on Monday morning.
Read: Following request for leadership changes, Coinbase CEO tells workers to quit smoking if they don’t believe in top executives
The moves are taking place following Consensus, a major cryptocurrency conference that ended on Sunday. Christopher Brendler, a DA Davidson analyst covering cryptocurrencies, was cautious in recapping the event.
“Unfortunately, we came out much more bearish (since) the sharp drop in liquidity has stressed even the strongest players,” he wrote. “While public companies are bigger, they are much better positioned and could still take advantage of the forced consolidation, the fall of BTC weekend and the increase in network hashrate aggravates what is already a very difficult situation.”
Brendler’s coverage includes cryptocurrency companies such as Core Scientific Inc. CORZ,
Riot Blockchain Inc. RIOT,
and Marathon Digital Holdings Inc. MARA,
all of which have dropped more than 11% on Monday.
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He speculated that Block Inc. SQ,
the company, formerly known as Square, could be “a good option” for a merger with a mining company, although he acknowledged that CEO Jack Dorsey “is more interested in increasing decentralization than in bringing together the miners, so any deal would be small, plus a learning experience. “
Block, which allows users of its Cash App mobile wallet to trade bitcoins, is experiencing a nearly 10% drop in its own shares 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, down from about 5% last year.
“We don’t believe any of our companies have material exposure to cryptocurrency volumes,” he wrote about his payment coverage universe, which includes Block, Mastercard Inc. MA,
and Visa Inc. V,