Crypto stock trading in the US market has underperformed as investors await the release of Consumer Price Index (CPI) data.
The regulatory environment has been causing a stir in the cryptocurrency world, leading to declining share prices for some of the biggest players in the industry. Silvergate, a crypto-friendly bank, saw its share price fall 3.7% to $14.46, according to Nasdaq data.
The bank has faced increased scrutiny in recent months following the collapse of FTX, and is concerned about regulatory oversight in the US of financial institutions that interact with cryptocurrencies. MarketWatch reports that Silvergate has become the shortest stock on Wall Street.
Meanwhile, Coinbase shares were trading around $56, down 0.8%. Last week, the exchange’s shares fell 22% after the Securities and Exchange Commission (SEC) told the public that Kraken agreed to pay $30 million and stop offering staking products for US clients. .
Ryan Coyne, a senior equity analyst at Mizuho, commented on the situation, saying last week’s stock price plunge and today’s losses are likely related to the SEC crackdown on the holdings.
Despite the rally in cryptocurrencies in January, Coyne noted that retail investors have yet to return to the market, which could put pressure on Coinbase’s revenue as most of its revenue comes from transaction fees charged on cryptocurrencies. retail transactions.
On a positive note, MicroStrategy and Block were up, gaining 2% and 3%, respectively. Major US stock indices including the S&P 500, Nasdaq 100 and Dow Jones Industrial Average also rose.
The crypto stock market is experiencing a rough patch as investors await the release of CPI data. The regulatory environment continues to generate uncertainty, leading to declining share prices of some of the major players in the industry.
