Why Coinbase, Silvergate, and Cryptocurrencies Are Down Big Today
Cryptocurrency values and the stocks of the companies that depend on those tokens continued to fall on Thursday, continuing a rough six-month stretch for the whole sector.
As of 2:30 p.m. ET, Bitcoin (CRYPTO: BTC) had fallen by 5.2% over the prior 24 hours to a level near $19,000, while Ethereum (CRYPTO: ETH) was down 7.1% to about $1,030. That drop in cryptocurrencies has also hurt trading and storage platform Coinbase (NASDAQ: COIN), which fell as much as 11.3% during Thursday's session and is currently down 4.4%, and Silvergate Capital (NYSE: SI), which dropped by as much as 11.2% and is now down 5.1%.
The massive shakeout of leveraged positions in cryptocurrencies continues, and some big companies are taking a fall. On Thursday, it was reported that FTX could acquire BlockFi, a crypto lender, for just $25 million. Early in June, BlockFi was close to completing a new funding round that would have valued it at $1 billion.
Source Fool.com
