Coinbase Global Inc COIN shares are trading lower Monday amid a decrease in the price of Bitcoin BTC/USD and Ethereum ETH/USD.
The cryptocurrency market is showing weakness after the Biden Administration on Friday signaled support for further crypto enforcement in a series of published reports that follow an executive order U.S. President Joe Biden signed this year on responsible development of digital assets. The reports are pushing regulators to outline risks including the potential for crypto to be used for money laundering or fraud.
Expectations of continued Fed actions to curb inflation could also be weighing on broader risk assets. The latest CPI inflation data could act as a confirmation of recent indicators and push the Fed toward another 0.75% rate hike in its upcoming meeting on Tuesday.
Ethereum also transitioned from a proof-of-work model to proof-of-stake last week in its highly anticipated merge, which could be adding to volatility in the crypto markets. SEC chairman Gary Gensler has suggested that Ethereum may need to be treated as a security following the merge.
Coinbase is the leading cryptocurrency exchange platform in the United States.
COIN Price Action: Coinbase has a 52-week high of $258.80 and a 52-week low of $40.83.
The stock was down 6.65% at $69.06 at time of publication, according to Benzinga Pro.
Photo: courtesy of Coinbase.