Binance.US Launched the Zero-Fee BTC Transaction, and Coinbase’s Shares Price Fell with Crypto Price

Cryptocurrency prices returned to the doldrums, hurting Coinbase and related stocks. As the prices of Bitcoin (BTC) and Ethereum (ETH) fell by more than 6% and 8% respectively, and Binance.US said it would launch Bitcoin zero-fee transaction. The share price of Coinbase Global (COIN) fell more than 7% on Wednesday, lagging behind its peers exposed to cryptocurrencies.

Binance.US Launched the Zero-Fee BTC Transaction

Other stocks affected by cryptocurrencies, including Galaxy Digital (GLXY) and MicroStrategy (MSTR), kept rising. Galaxy rose 0.6% in Toronto and MSTR fell 1%. Cryptocurrency miners fell. Cipher Mining (CIFR), Hive Blockchain (HIVE), Hut 8 (HUT) dropped at least 3%.

The competition to provide customers with little or no transaction fees continues, which may increase the competitive pressure of the exchange. Binance. Us said on Wednesday that it would provide zero-fee Bitcoin transactions on its platform as it tried to attract more users.

Mark Palmer, an equity research analyst at BTIG, told clients in a note on Wednesday that Coinbase will continue to face headwinds in the current cryptocurrency crash, especially given the struggles of Celsius and Babel finance. Parr defaults that Coinbase can withstand the storm due to its large scale and sufficient capital.

The Impact of the Current Downturn

Palmer wrote:” although we do not underestimate the impact of the current downturn in the cryptocurrency market, we also believe that, given the local facts, any view that COIN will not be able to withstand this latest challenge is wrong. He reiterated the buying proposal and reduced the target price of Coinbase from $380 to $290.

At the same time, Mizuho Securities research analyst Dan Dolev said that he saw potential signs of “cryptocurrency fatigue” in the trading mode.

“COIN trading volume seems to have surged during the sell-off, but failed to rebound during the short rallies,” dolev said in a note to clients. “As evidence, the average daily trading volume on the decline day of Bitcoin on the COIN platform is 15% higher than that on the rise day of Bitcoin. However, in recent months, the trading volume on the decline day is 42% higher than that on the rise day, or nearly three times higher than that before.” Dolev rated COIN neutral with a target price of $45.