The crypto complex is being hit with major problems, as shown by declines in popular cryptocurrencies like bitcoin, dogecoin and even stocks related to cryptocurrency like Coinbase.
Bitcoin was down by -2.34%
and trading at $43,047.15 on CoinDesk, which is down nearly 30% from its peak of mid-April. Dogecoin was down by -3.04%,
and was trading at 48 cents, or lower by over 36% from its high of 75 cents.
The crypto declines across the board have removed over $500 billion from crypto. Making it a bad seven-day stretch for the new asset, with dogecoin maintaining its hold better than its peers.
Meanwhile, Coinbase was lower by 5.5% as the crypto-linked platform followed the crypto market.
The company was lower by about 30% since it had its IPO about a month ago. It published quarterly earnings last week, and they were in line with expectations and matched the firm’s preliminary data that was released before its IPO.
However, the lagging sentiment about bitcoin was beginning to chip away at Coinbase’s push higher, along with other crypto-linked assets.
The Bitwise Crypto Industry Innovators ETF
which started last week, gives exposure to crypto-connected assets and was lower by 6.2%, with Coinbase among its primary holdings.
Elon Musk’s recent SNL comedy skit was blamed by some for the downturn in cryptos, but others say the asset class’s sensitivity to news proves the bubble nature of digital assets that have gone too far and fast.
Cryptos like bitcoin and dogecoin have had great returns compared to traditional assets this year. Dogecoin is higher by 10,000% and bitcoin has surged 50% so far this year.