Coinbase Narrows Losses But Continues to Struggle as Crypto Winter Persists
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Coinbase posted its 7th consecutive quarterly loss, but one which narrowed as trading volumes fell. The company is battling the SEC over allegedly operating an unlicensed crypto exchange.
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Coinbase came closest to a positive earnings result since Q4 2021 when the crypto boom was raging. Shares initially fell but ended up 1.8% higher.
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Bitcoin, which is roughly half the crypto market cap, declined 12% quarter-over-quarter. Overall crypto market cap fell 9% to $1.1 trillion.
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The global spot trading volume on Coinbase declined 24% quarter-over-quarter, reflecting the broader crypto downturn.
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Bitcoin bulls say the crypto shakeout was necessary to separate Bitcoin from other digital assets. This is contributing to Bitcoin's bounceback.