Crypto
Crypto market pulls down Coinbase and MicroStrategy
Crypto stocks like Coinbase and MicroStrategy plummet – current price developments in the crypto market responsible.
![](https://images.prismic.io/eulerpool/ZlON2ik0V36pXo3U_Eulerpool-AlleAktien-MicroStrategy-wird-in-den-MSCI-World-Index-aufgenommen.jpeg?auto=false)
Shares of crypto companies like Coinbase and MicroStrategy came under heavy pressure on the stock market on Tuesday. The reason for this is the current price developments in the crypto market.
The stock of the cryptocurrency exchange Coinbase lost 2.25 percent on the NASDAQ, falling to $244.20. MicroStrategy recorded a loss of 2.78 percent, dropping to $1,555.49, while Robinhood decreased by 0.85 percent to $23.22.
Responsible for this significant price decline is the price drop in Bitcoin. The oldest cryptocurrency lost around 3.74 percent in value on Tuesday and was trading just above 67,000 US dollars. Back in March, Bitcoin had reached a record high of 74,000 US dollars.
The nervousness in the market regarding the upcoming price data release in the USA and the interest rate decision by the US Federal Reserve on Wednesday is cited as the reason for the declining Bitcoin price. A rate cut by the Federal Reserve currently seems to be off the table, which is burdensome for crypto investors, as digital currencies - similar to gold - do not yield interest. "Crypto market investors are evidently getting cold feet," commented market analyst Timo Emden of Emden Research. According to this, investors are concerned "that the monetary policy headwind in the USA will last longer than expected.
Here is the translated heading:
"That Coinbase, Robinhood, and MicroStrategy are tracking the developments in the crypto market with their stocks is not by chance. Coinbase is the second largest crypto exchange in the world and one of the most important trading platforms for Bitcoin. If the buying interest among Bitcoin investors declines, Coinbase feels the impact immediately. The neobroker Robinhood also has a significant dependency on Bitcoin because declining willingness to buy directly results in reduced activity and lower trading revenues."
(Note: The text provided did not contain a clear heading, but I have translated the entire given text. If you intended only the first sentence or a different portion, please specify.)
The software manufacturer MicroStrategy, on the other hand, holds large amounts of Bitcoin and is often seen in the market as a kind of leverage on the world's largest cryptocurrency. The company's value is primarily derived from the value of the Bitcoins in its inventory. If these decrease in value, the value of MicroStrategy also decreases.
The upcoming decisions of the US Federal Reserve and the release of price data will show whether the downward trend in the cryptocurrency market will continue or if prices can stabilize.