In This Article:
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Coinbase stock fell 10% on Monday.
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The losses come after the White House crypto summit on Friday failed to boost asset prices.
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The company was also passed over for entrance to the S&P 500.
The move: Coinbase slumped as much as 10% on Monday, falling to $197.61 per share. The stock is now down 20% for the year.
Why: Last week's White House Crypto Summit failed to shore up price support. The Friday event — attended by Coinbase CEO Brian Armstrong — gave investors no new policy support to rally around, while the preceding announcement of a crypto reserve did not meet expectations.
The crypto market has soured in recent weeks. Bitcoin and alternative tokens continue to lose momentum amid eroding confidence in the broader economy, triggering a risk-off mood.
Further, Coinbase was passed over for inclusion in the S&P 500 after a quarterly reshuffling. DoorDash, TKO Group, Williams-Sonoma, and Expand Energy were selected to enter the index index.
What it means: These factors are disrupting a run of good news for Coinbase. Less than two weeks ago, the Securities and Exchange Commission ended a two-year legal case against the crypto exchange, signaling a shifting regulatory climate under President Donald Trump.
In a Friday Yahoo Finance interview, Armstrong signaled that Coinbase plans to hire thousands more thanks to this regulatory clarity.
It's likely the firm will have to first navigate the bearish market forming in crypto. Other companies related to digital assets also descended on Monday, including Strategy and crypto miners such as Riot Platforms and Mara Holdings.
Read the original article on Business Insider