‘Bloodbath’—Sudden $1 Trillion Crypto Cr‘Bloodbath’—Sudden $1 Trillion Crypto Crash Sparks Fresh Coinbase Warning And Tanks The Price Of Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana
Bitcoin
The bitcoin price has dropped to around $25,000, down 5% to its lowest level since March and mirrored by declines seen by the ethereum price. However, other top ten cryptocurrencies—BNB, XRP
Crypto's latest crash—plunging the crypto market to around $1 trillion and described as an "absolute bloodbath" by one trader on Twitter—comes as one of the top global credit rating agencies, Moody's, dropped its outlook on embattled bitcoin and crypto exchange Coinbase from stable to negative.
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Moody's analysts wrote that the "uncertain magnitude" of events this week had triggered their Coinbase downgrade, putting its price outlook at "negative" for the next 12 to 18 months.
This week, the U.S. Securities and Exchange Commission (SEC) charged Coinbase with operating illegally, widening its crackdown on the industry after suing the world's largest crypto trading platform, Binance, accusing it of a range of violations that include mishandling user funds, inflating trading volume and evading regulation.
"The change in outlook to negative from stable reflects the uncertain magnitude of impact the SEC’s charges will have on Coinbase’s business model and cash flows," Moody's researchers wrote.
Coinbase stock, peaking shortly after its 2021 market debut at the top of the bitcoin and crypto bull run, has crashed by almost 90% due to growing fears a U.S. crypto trading crackdown could spell the end of the industry.