Coinbase investors are already feeling the impact of inflation. Some are already selling their cryptocurrency assets amid the uncertain changes in the market.
Inflation has been a driving factor in why the prices of goods, services, and commodities keep rising. The economic downturn hit even the popular crypto exchange following a drop in its shares on Thursday, Oct. 13.
Coinbase Shares Drop to More Than 11%
Following Coinbase's grueling battle against inflation, the company saw how its shares dropped this week. Wall Street expected the problem to ease up, yet the September record yielded a different outcome.
When Coinbase's shares plunged to over 11%, other popular cryptocurrencies and stocks also shared the same pain. Block, a company known before as Square, experienced a 7% drop in same-day trading. Meanwhile, Marathon Digital, Riot Blockchain, and Microstrategy were down by 5%.
The hot inflation report also suggests lower trading during the run, according to the Bureau of Labor Statistics.
Wall Street has suffered from high volatility brought on by inflation and the war between Ukraine and Russia. All over the world, the economic impact was felt by many organizations and firms.
Speaking of inflation, this problem could also bring up an increase in interest rates which might hamper the progress of the country's economy.
The CPI data on Oct. 13 reveals that there will be a 75% increase in asset hikes for the next two months of the year. That said, investors fear they won't earn anything from it. That's why they tend to sell their "riskier" assets, such as cryptos and equities.
Related Article : Google-Coinbase Deal to Allow Cloud Users Pay With Crypto; Start Date and Other Details
Coinbase Receives Approval From Singapore Central Bank
The biggest crypto exchange in the United States is planning to expand its service in Southeast Asia, that's why it asked Singapore regarding its regulatory license.
According to Reuters, the platform got a green light from Singapore to operate its services in the country. With the implementation, users and organizations can now rely on digital payment token services thanks to the Payment Services Act.
Coinbase said it's a "significant milestone" for the company this year. Hamman Ahmed, the regional director of Coinbase in SEA, acknowledged Singapore as a central hub for the Web3 venture.
If you want to check more crypto-related updates, always stay tuned at Tech Times to read our regular Cryptowatch releases every Sunday.
This week's wrap-up is all about:
- Mastercard's anti-fraud tool for crypto transactions is called "Crypto Secure."
- BNB's struggle with its $570 million loss, and
- Crypto hacking schemes of North Korean cybercriminals.
This article is owned by Tech Times
Written by Joseph Henry
