Cryptocurrency markets are showing signs of life this Wednesday as Bitcoin and Ethereum manage to hold support and register single-digit percent gains. Bitcoin is trading at $24.1k, and Ethereum is up at the $1.8k level, approaching 50% of BTC’s market capitalization. Today’s big news is Coinbase’s Q2 earnings report which revealed the company lost over $1.1 billion last quarter.
Bitcoin and Ethereum Prices Show Bullish Momentum
This week has been bullish for both Bitcoin and Ethereum prices. Bitcoin’s price managed to hold through yesterday’s correction to the $23k support level and is rising again this morning, up 3.59% in the past 24 hours, trading at $24.1k. The 24-hour trading volume for Bitcoin is also increasing, up 13% in the past day.
When it comes to Ethereum, it’s amplifying Bitcoin’s movements, with a 24-hour gain of 9% and an increase in today’s trading volume of 20%. Ethereum’s market capitalization of $222 billion is approaching half of Bitcoin’s $506 billion market cap, as ETHUSD manages to outperform BTCUSD daily.
Coinbase Q2 Earnings Report Reveals $1.1B in Losses
Coinbase’s letter to shareholders revealed that the company lost $1.1 billion in Q2 2022. The losses don’t come as a surprise as the crypto winter was evident for everyone.
The letter is split into six chapters:
- Chapter 1: Crypto is cyclical
- Chapter 2: Down markets create financial headwinds, with are reflected in our Q2 results
- Chapter 3: Coinbase is adjusting to market conditions
- Chapter 4: Building for the future and excited by product momentum
- Chapter 5: Strong capital and risk position
- Chapter 6: Outlook
Q2 has been a challenging quarter for cryptocurrency, and traditional finance companies as the state of the U.S. economy declined significantly this year.
The good news is that cryptocurrency markets are cyclical and following every bear market comes a bull market. The companies that survive the challenging period will reap the fruits of their labor during the harvest season, aka the bull market.
Coinbase revealed that in response to the crypto winter, the company had downsized its employee base by over 18%, letting go of more than 1,100 workers last quarter. While it may not have been the best PR for Coinbase when news broke out of rescinding job offers and downsizing its team, it was necessary to respond to the rapidly declining market conditions last quarter.
The company’s outlook regarding crypto markets remains bullish, which spells good news for long-term crypto holders and investors.
The letter also touches on Coinbase’s efforts to enter the Web3 market, citing:
“We are excited about the potential of Web3 and look forward to playing our part in helping policymakers develop workable and clear regulations that enable its development.”
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.