Alongside the high bond yields, cryptocurrencies are thought to raise doubts about its long-term viability among institutional investors.
Bonds issued by cryptocurrency exchange Coinbase and MicroStrategy, a business intelligence firm and bitcoin investor, plunged in value as investor confidence in the industry slipped after the collapse of FTX.
Institutions Losing Confidence in Crypto
According to data from Finra-Morningstar, Coinbase’s 2031 bond fell 15 percent this month to $0.5 in dollar terms, putting the yield moving in the opposite direction to a record high of 13.5 percent. The drop comes after nearly three months of consolidation and marks an extension of the bearish trend seen earlier this year. On the other hand, the company’s bond yield, which must be paid in 2026, rose to 17 percent.
Mike Alfred made a statement addressing the issue:
“High bond yields reflect genuine skepticism about the long-term viability of cryptocurrencies among institutional investors after sharply higher rates as well as the high-profile crashes of Terra Luna, Celsius, 3AC, Voyager, BlockFi and FTX.”
