From Nasdaq:

Coinbase Global shares dropped by 10.4% in trading Monday, with a 9.2% session-ending drop. A 10% drop was tied to speculation that interest rates would stay at higher levels than expected (source: Nasdaq).

The crypto industry is generally seen as benefiting from lower interest rates, as safe investments push investors to riskier assets. Coinbase’s growth, however, derives 34% of revenue from interest income and stablecoin revenue. Analysts state that higher interest rates would be a tailwind for Coinbase’s business and beneficial to its shareholders.

The Motley Fool’s Stock Advisor analyst team does not include Coinbase Global in its top 10 stock picks. References in this article include a significant percentage of revenue derived from interest income (source: The Motley Fool).



Read more: Why Coinbase Stock Dropped 9.2% Today