The Yieldmax Coin Option Income Strategy ETF (CONY) is experiencing downward pressure due to several factors impacting its underlying asset, Coinbase (COIN). Barclays recently lowered its price target for Coinbase by $8, reflecting concerns over the company's future performance amid a challenging macroeconomic environment. Additionally, the broader crypto market is under strain as Bitcoin's price fell below $90,000, driven by a lack of liquidity and reduced capital inflows. This decline in Bitcoin, a key driver of sentiment in the crypto space, has negatively impacted Coinbase and other crypto-related stocks.
The macroeconomic backdrop is also contributing to the pressure on Coinbase. Rising bond yields are weighing on global equity markets, with technology shares, including those in the crypto sector, being particularly affected. The recent strong U.S. jobs report has dampened expectations for interest rate cuts, further tightening financial conditions and reducing risk appetite among investors. This has led to a sell-off in growth-oriented assets like cryptocurrencies and tech stocks, exacerbating the decline in Coinbase's stock price.
The Yieldmax Coin Option Income Strategy ETF (CONY) is currently trading at $11.92, down 4.02% from its previous close.