Coinbase plunges over 14% as bitcoin plunges

The logo of Coinbase Global Inc, the largest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others in Times Square in New York, U.S., April 14, 2021.

Shannon Stapleton | Reuters

Coinbase shares were down more than 14% on Monday morning. Shares were down more than 21% before markets opened.

Coinbase makes a commission when people buy and sell cryptocurrencies. Monday’s decision appears to be tied to the fall in the crypto market.

Bitcoin is now trading at the lowest levels since December 2020, below $24,000, according to data from CoinDesk. Over $200 billion has been wiped from the cryptocurrency market since the start of the weekend.

Crypto lender Celsius may be partly responsible for the drop in digital currency prices. The company said on Monday that it was suspending all withdrawals, exchanges and transfers between accounts due to “extreme market conditions”. Binance also temporarily suspended bitcoin withdrawals on Monday, but said the choice was due to a “stuck transaction causing a backlog.”

Coinbase stock is down 76% year-to-date, after May first-quarter results showed revenue fell 27% year-over-year as usage fell decreases. “We believe these market conditions are not permanent and we remain focused on the long term,” the company said at the time.

CNBC’s Ryan Brown and Arjun Kharpal contributed to this report.

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