- Coinbase stock fell 17% Monday on the heels of a broader cryptocurrency selloff.
- Silvergate Capital also fell victim to the market turmoil, tumbling 14%.
- The volatility comes as investors shy away from risk assets in favor of bonds with higher yields.
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.