Bitcoin Price Drops as Coinbase Shares Slip
After reaching a high of $187 per share, Coinbase has experienced a 20% drop due to the volatility in bitcoin’s price. The hope for the approval of spot bitcoin ETFs, which would attract institutional investors, had been driving up the price of the cryptocurrency. However, on Wednesday, bitcoin’s price suddenly dropped to $42,205. As a result, Coinbase shares also slipped below $150 per share.
Anticipation of Spot Bitcoin ETF Approval
The approval of spot bitcoin ETFs is highly anticipated in the crypto industry. While some analysts believe that the Securities and Exchange Commission (SEC) will approve a spot bitcoin exchange-traded fund by the Jan. 10 deadline as a “political necessity,” others offer a more negative outlook. The decision of the SEC regarding spot bitcoin ETFs continues to heavily influence the entire crypto market.
Ark Invest Offloads Coinbase Shares
Cathie Wood’s Ark Invest has sold $200 million worth of Coinbase shares in recent weeks. Despite this, Coinbase still maintains a market capitalization of around $36 billion.
About Author
RT Watson is a senior reporter at The Block who covers various topics including U.S.-based companies, blockchain gaming, and NFTs. With experience in covering entertainment and technological disruption across media, RT has interviewed a wide range of individuals from CEOs to convicted criminals. He holds a master’s degree in Digital Sociology.
Hot Take: Bitcoin Price Volatility Impacts Coinbase
The recent drop in bitcoin’s price has had a significant impact on Coinbase shares, causing them to slip by 20%. The anticipation surrounding the approval of spot bitcoin ETFs continues to influence the crypto industry as analysts offer differing outlooks on the SEC’s decision. Additionally, Ark Invest’s sale of Coinbase shares further contributes to the market dynamics. Despite these fluctuations, Coinbase maintains a substantial market capitalization. The crypto market remains highly sensitive to bitcoin price movements, emphasizing the interconnectedness between cryptocurrencies and traditional financial institutions.
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