Coinbase (NASDAQ:COIN) shares rose 3% in Monday’s premarket as the cryptocurrencies that bring the exchange most of its revenue tried to claw back losses after a bruising week.
Last week’s rout shaved 30% to 50% of the market value off many cryptocurrencies in a sell-off sparked by China, whose miners account for some 70% of the supply, according to Reuters. Traders spent much of last week dumping digital currencies.
A draw down of 30% is not unusual for cryptocurrencies. Still, China’s warning about speculation in digital currencies compared with conflicting comments from Tesla (NASDAQ:TSLA) CEO Elon Musk, who has been the biggest crypto champion. That added to the unease.
Bitcoin (BTC), the largest cryptocurrency by market value, rose 13% overnight Monday to trade slightly above $38,000. It is still around 40% below last month’s record high of $64,895.
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