Welcome to the crypto apocalypse, where everyone gets to watch billions of dollars vanish faster than you can say Sam Bankman Fried! Bitcoin is dropping, FTX and Binance have gone bust, and everyone is wondering what will happen next. As strange as it sounds, the turmoil could end up being good news for
though the short term promises more turbulence for its stock.
Coinbase (ticker: COIN) has had a rough go of it in 2022. The stock has dropped 78% this year as Bitcoin slumped and investors questioned the future of cryptocurrencies. Those issues have been exacerbated by the collapse of FTX, which was supposed to be a paragon of virtue in the crypto universe, but instead became a black hole that could have more than one million creditors. Since the start of November, Coinbase stock has dropped 16%, even as the
has risen 3.1%, the
Dow Jones Industrial Average
has advanced 2.6%, and the
has gained 3.4%.