The Bitcoin-exposed stocks are getting battered by the recent crypto crash as we can see the price of Coinbase stocks nosediving the most so let’s read more about it in today’s latest Bitcoin news.
The Bitcoin-exposed stocks are taking quite the beating and they could be in for a lot more as coinbase reported the earnings recently. A huge sell=off on the market happens which sees BTC dipping below $30,000 and also triggered collateral damage to the stock prices of the other public companies with high exposure to the crypto markets.
While overall share prices are sagging amid the market turmoil, the carnage was brutal for the likes of PayPal, Coinbase, and Block all of which invested in crypto. NASDAQ’s indexes are down around 5.5% over the past five days as the equivalent figure for Coinbase is an eye-watering drop of 35%. the shares of the crypto industry’s public company were trading at $80 which is less than half of what COIN shares fetched during early April and a far cry from the high of around $350. in the meantime, PayPal shares are down by over 11% in the past five days while Block is down by 20%, and Microstrategy, the cyber security company whose CEO made a series of BTC purchases had its price drop by 37% in the past week.
The share price of other companies which are crypto-focused like Coinbase all performed badly. Galaxy Digital is down 25% over five days and the shares of Bakkt as a company that aspires to provide a Wall Street-like crypto experience is bounding near $2.50 which is a 30% drop over five days. The companies are in for another jolt later on especially since Coinbase reported its first-quarter earnings and it is expected to pose lower earnings than other quarters because of a fall-off in trading volumes in the recent months which is a situation where more analysts and investors price in. If Coinbase misses the low expectations or predicts negative guidance in the future, the stock could go diving further and drag the share price of other crypto-exposed companies down with it.
The Coinbase shares crash after the company analyst missed the Q1 earnings and revenue predictions. The exchange released the earnings for the first quarter of 2022 and the results didn’t do much to improve the mood in the markets. The company disclosed that it pulled in $1.17 billion in revenue which is short of the $2.5 billion that it took in Q4 and below the analysts’ predictions of $1.5 billion.
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