The GraniteShares 2x Long Coinbase Daily ETF (CONL) is experiencing a downturn as the underlying asset, Coinbase (COIN), faces significant pressure. The decline in Coinbase's stock is primarily driven by a broader sell-off in cryptocurrency-exposed stocks, which has been exacerbated by a sharp drop in Bitcoin prices. Bitcoin fell by 3% to $100,776.81, influenced by a tech sector rout triggered by the emergence of a competitive AI model from Chinese startup DeepSeek. This development has raised concerns about the dominance of U.S. tech companies and has led to a risk-off sentiment in both the tech and crypto markets.
The cryptocurrency market is also reacting to the upcoming Federal Reserve meeting, with investors cautious about potential interest rate decisions. The uncertainty surrounding the Fed's stance has added to the volatility, prompting traders to lock in profits and reduce exposure to riskier assets like cryptocurrencies. Additionally, the recent executive order from President Donald Trump on digital assets has not provided the clarity or support that some market participants were hoping for, further contributing to the negative sentiment.
The CONL ETF is currently priced at $45.27, reflecting a 7.55% decrease from its previous close.