Stock Track | Coinbase Stock Plummets 10% Amid Crypto Market Selloff and Global Uncertainty.

Shares of Coinbase Global, Inc. $Coinbase (COIN.US)$ took a significant hit on October 1, 2024, plunging by 10.06% amid a widespread selloff in the cryptocurrency market and heightened global uncertainty. The decline was fueled by multiple factors, including a broad downturn in digital assets, escalating geopolitical tensions, and uncertainty surrounding the Federal Reserve's future monetary policy moves.

The cryptocurrency market experienced a bearish sentiment, with major coins like Bitcoin, Ethereum, Shiba Inu, and Dogecoin posting substantial losses. Bitcoin, the world's largest cryptocurrency, faced a potential breach of its key support level at $63,000, signaling the possibility of further downside. This negative sentiment in the broader crypto market weighed heavily on Coinbase's performance, as the company derives a significant portion of its revenue from trading fees and other cryptocurrency-related services.

Adding to the market volatility were reports of escalating geopolitical tensions in the Middle East. News emerged that Iran was preparing to launch a ballistic missile attack on Israel, sparking concerns among global investors. This heightened uncertainty led to capital outflows from riskier assets, including cryptocurrencies, further exacerbating the selloff.

Moreover, comments from Federal Reserve Chair Jerome Powell regarding the potential future path of interest rate cuts injected additional uncertainty into the market. While Powell hinted at possible rate cuts, he also emphasized that the Fed's decisions would be made on a meeting-by-meeting basis, leaving room for unpredictability. This lack of clarity on the Fed's monetary policy stance contributed to the market's volatile behavior.