The shares of Coinbase fell 6% in premarket trading on Friday as the world of cryptocurrencies experienced yet another crisis.

At 8:20 a.m. ET, Bitcoin had fallen as much as 10% before recovering somewhat to trade around $38,519 dollars. Ethereum ETH/USD, the second-largest cryptocurrency by market capitalization, fell by 12%. Shiba Inu SHIB/USD is down 10%, and Dogecoin DOGE/USD is down 9%.

File:Coinbase.svg - Wikimedia Commons

According to Coinmarketcap.com, the global crypto market cap fell 8.6% to $1.8 trillion, but trading volumes more than doubled.

The idea of cryptos as an inflation hedge has been put to the test in recent weeks. Since hitting an all-time high of $68,990.6 in November, Bitcoin has dropped more than 45 % of its value in just over ten weeks.

Cryptos are losing ground as yields increase and investors leave riskier assets in anticipation of the Fed's first rate hike since the epidemic. As the pandemic-induced growth slows and the globe returns to normal, so-called growth stocks have plummeted. Peloton stock, a pandemic winner, dropped roughly a fourth of its value on Thursday after news that it may suspend production for a few months due to a lack of demand. The news was rejected by Peloton. Netflix was down 20% in the premarket today due to dwindling membership numbers.

In Friday's premarket, crypto-related equities were also down substantially. MicroStrategy, a major Bitcoin investor, lost about 9% of its value. Hut 8 Mining was down 8%, while Bit Digital was down 7%.