CBA share price crashes hard
- The CBA share price is down, amid fierce competition in the mortgage market.
- CBA (CBA:ASX) does not mention entry into cryptocurrency space as reason.
- Home loan pricing and a higher proportion of low fixed-rate loans to blame.
Don’t look up now but it seems the Commonwealth Bank of Australia (ASX:CBA) is facing some headwinds, with as much as $15 billion wiped from its value in yesterday’s trading session.
The CBA share price closed trade yesterday November 17 at A$98.99 a share down from as much as A$110 just 10 days ago.
Investors hit sell, after the bank announced lower profit margins caused by the record low cash rate and fierce home loan competition.
While the CBA recently announced it will become Australia’s first bank to offer customers the ability to buy, sell and hold crypto assets, directly through the CommBank app, it appears its woes are unrelated to the recent wide-scale crypto market crash.
The CBA reported that it has faced headwinds such as low yielding cash and bonds, sharp home loan pricing, and a higher proportion of low fixed-rate loans on its books.
Meanwhile, Bitcoin, which is the world’s biggest and best-known cryptocurrency, dropped below $US60,000 – its lowest level in more than two weeks.
As of 10.30pm GMT today, the cryptocurrency Bitcoin price was trading at US$ 59,911.80.
Cryptocurrency analysts have not been able to identify any particular news driving the falls, although it appears a move by China’s central bank to ban all forms of cryptocurrency trading could be one catalyst.
Several other cryptocurrencies also dropped in value this week, including Ethereum, Solana, and Cardano.
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