Why Coinbase (COIN) Stock Is Sinking Today

Coinbase (COIN) stock is falling for a seventh straight trading day, declining 4% this morning. Today’s retreat of COIN stock comes amid a large drop in cryptocurrencies in the wake of a massive hack of another major crypto exchange. Additionally, worries about the U.S. economy are likely pulling cryptos down.

Bybit Got Hacked

Bybit, which, like COIN, is a major crypto exchange, lost about $1.5 billion of digital assets in a huge hacking attack, according to multiple reports that were published on Friday. The exchange confirmed that a hacker “took control” of its Ethereum cold wallet. The value of the crypto stolen represented an all-time record, far eclipsing previous hacking attacks.

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Cryptos Have Tumbled

Bitcoin fell below $90,000 today, representing a three-month low. The cryptocurrency has sunk about 18% below its all-time high of slightly above $109,000.   Meanwhile, Ethereum is sinking nearly 10% today and is changing hands for around $2,400 per token. Prior to the hack of Bybit, Ethereum was worth around $2,800 per token.

Concerns About the Economy Have Weighed on Cryptos

Worries about inflation and interest rates staying elevated for long periods of time have likely weighed on cryptos’ values. Also probably pushing down cryptos are fears that President Donald Trump’s tariffs will cause the U.S. economy to slow. And the decline in cryptos, in turn, has caused COIN stock to tumble. COIN is now about 38% below its all-time high of nearly $350.

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READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: The author is shorting COIN and has put options on the stock but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.