The Ongoing Cryptocurrency Boom That Temporarily Propelled Bitcoin Above the Dizzying Mark of $73,750 Recently Hit a Snag. Massive Profit-Taking Led to an Abrupt Price Crash, with Bitcoin Briefly Falling Below the $66,000 Threshold. These Turbulences in the Crypto Market Did Not Spare the Shares of the Crypto Exchange Coinbase Either. After Already Suffering a Notable Loss of 7.17 Percent the Day Before, Closing at $233.67, the Downtrend Continued in the Pre-market NASDAQ Trading, Where the Stock Lost an Additional 5.97 Percent and Fell to $219.71.

The connection between Coinbase's performance and the development of the crypto market is apparent, as the company earns its money from trading digital currencies. The past months have seen a strong increase in trading volume, driven by the approval of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) and the expected Bitcoin halving in April, an event that halves the rate at which new Bitcoins are created.

However, the momentum in capital inflows into Bitcoin spot ETFs has recently slowed somewhat. Moreover, recently released economic data caused a subdued market sentiment as they indicated later interest rate cuts by central banks. These developments underline the close connection between cryptocurrency market sentiment and the performance of companies like Coinbase, which are directly dependent on cryptocurrency trading.