Coinbase cuts 1,100 crypto jobs as Bitcoin plunges 10pc

Coinbase, which allows people to buy and sell bitcoin and other cryptocurrencies, was launched in April 2021 with $86 billion.

Shares have since fallen 85 percent amid a decline in both cryptocurrency prices and the broader stock market.

In a note to employees, Mr. Armstrong said: “We appear to be entering a recession after more than a decade of economic boom. A recession could result in another crypto winter and last for a longer period of time.”

He said the company had grown “too fast”, from 1,250 in early 2021 to around 5,000 today. “Although we tried our best to get everything right, in this case I now realize that we hired too much,” he said.

This week’s selloff was prompted by Binance, the world’s largest cryptocurrency exchange, which briefly suspended trading in Bitcoin, the world’s largest digital token. The company blamed a technical error.

Celsius, another major cryptocurrency lender, halted all transactions on Monday, with chiefs citing “extreme market conditions.” It remains frozen with millions of users locked out of their accounts.

The cool stance on bitcoin could be driven by the prospect of further rate hikes by the central bank to curb inflation. Cryptocurrencies have fallen sharply amid a flight from risky assets as monetary policy tightens around the world.

Inflation hit 8.6 percent in the US last month, compared with a 9 percent rise in prices in the UK. Coinbase cuts 1,100 crypto jobs as Bitcoin plunges 10pc

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