Coinbase, Silvergate Capital shares tank as broad crypto selloff hits wider ecosystem

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Coinbase, Silvergate Capital shares tank as broad crypto selloff hits wider ecosystem
CoinbaseSOPA images
  • Coinbase stock fell 17% Monday on the heels of a broader cryptocurrency selloff.
  • Silvergate Capital also fell victim to the market turmoil, tumbling 14%.
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Crypto stocks like Coinbase, Silvergate Capital, and Riot blockchain plunged Monday on the heels of a broader cryptocurrency selloff that saw bitcoin fall below $31,000.

The volatility in the crypto market comes as soaring inflation is pushing investors away from riskier assets and into higher-yield options like bonds. The top-three cryptocurrencies by market capitalization — bitcoin, ether and solana — registered losses of 8%, 7% and 10%, and respectively.

Bitcoin often sets the trend for the cryptocurrency market. When bitcoin struggles, so too does the broader offering of tokens. The largest cryptocurrency by market capitalization is 53% lower than its all-time high of $69,000 seen in November.

The selloff is hitting companies in the wider crypto ecosystem. Shares of crypto exchange Coinbase sank 17%, crypto-exposed lender Silvergate plunged 15%, and bitcoin miner Riot Blockchain tumbled 18%, far outpacing the Nasdaq Composite's 3.75% slide and the S&P 500's 2.8% decline.

Coinbase is also set to report its first-quarter earnings after market close on Tuesday. Investors have exercised caution after management said in February that it expected a decline in trading volume and transactions in line with a more stable crypto market.

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