Stocks and cryptocurrencies were strongly out of favor with investors on Wednesday. Unfortunately for crypto-exchange operator Coinbase Global (COIN 5.48%), it's a combination of both, as it's a publicly traded company that's reliant on the popularity of digital coins and tokens. In what hardly qualifies as a surprise, investors traded Coinbase down mercilessly, and its share price closed more than 9% lower on the day.
If cyptocurrencies as a general asset class are getting the cold shoulder from investors, you can bet your bottom Bitcoin that Coinbase is taking a hit, too.
Popular and obscure tokens alike continued to fall in value Wednesday, with Bitcoin sliding by 4% as of late afternoon trading on Wednesday. Ethereum endured a nearly 6% fall, and the recently hot ApeCoin monkeyed around with a 9%-plus drop. In the face of those declines, no one is getting bullish on the prospects of a related asset like Coinbase.
It's hard to see any signs of this downward trend reversing. Cryptocurrencies are falling for a host of reasons, most of which are related to concerns about the immediate future of the global economy. Digital coins and tokens remain highly speculative investments, for the most part, and many people are parking their money into assets they believe to be safer in such an environment.
Coinbase's Wednesday swoon is hardly the company's own fault. As a business tightly tied to the fortunes of Bitcoin and the rest of the bunch, however, it'll continue to rise or fall on investor sentiment with those assets. That's not a great position to be in at the moment.