The cryptocurrency market experienced a sharp sell-off to begin the month, with major digital assets trading deep in the red. Bitcoin's price dropped by approximately 5.5%, falling below $86,000, while Ethereum saw a steeper decline of over 6.2%, bringing its price under $2,900. This broad market downturn has been attributed to a general risk-off sentiment and profit-taking by investors to start December. The widespread decline in crypto asset prices creates significant headwinds for Coinbase, as its revenue is closely tied to trading volumes, which are often impacted by negative market sentiment. Crypto-related stocks were among the biggest movers on the market. In a contrasting data point, the Coinbase Bitcoin Premium Index, which measures the price difference between its platform and others, turned positive, suggesting potentially stronger buying demand from U.S. investors compared to their global counterparts.
Crypto Market Plunge Hits Coinbase as Bitcoin and Ether Tumble
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