Coinbase Buckles 10% as Crypto Stocks Falter Despite Bitcoin Topping $45K
Coinbase shares fell 9.8% to close at just under $157 on the first trading day of the year, marking its worst daily decline since mid-2023. This followed a near five-fold increase in the stock price in 2023. Bitcoin miners Marathon Digital and Riot Platforms also saw declines of 1%-2% from Friday's close, despite Bitcoin rallying to a 21-month high above $45,000. MicroStrategy was a rare crypto stock that saw gains, closing with a 7.9% increase. The Bitcoin rally is attributed to market anticipation of imminent U.S. regulatory approval for a spot Bitcoin ETF, which could significantly broaden the investor base for the asset. However, a report by 10x Research suggests that crypto stocks may be overvalued compared to Bitcoin after their significant gains in the last quarter.
