Coinbase Stock Plummets 30% as BTC, ETH Register Sharp Declines
01.04.2025 16:02
Coinbase has experienced a severe downturn in the first quarter of 2025, with its stock dropping roughly 30%—its worst quarterly performance since the FTX collapse. This decline mirrors a broader setback in the cryptocurrency market, where Bitcoin fell over 10% from its all‐time high and Ether plunged by 45%. Factors including economic uncertainty, proposed tariffs, and inflation concerns have contributed to the bearish sentiment. Technical indicators, such as a potential death cross between the 50-day and 200-day moving averages, suggest further declines in Coinbase stock. Despite this, there is a split view among analysts: while some, like Mizuho Securities, have lowered their price targets for Coinbase, others, like H.C. Wainwright, have raised theirs following strong earnings. These mixed signals underscore the volatile environment currently affecting key crypto players.
Coinbase's reported 30% drop reflects both market panic and technical weakness, notably the impending death cross between its moving averages. In the short term, investor sentiment remains bearish, with significant institutional scrutiny. Long-term recovery may occur if broader market conditions stabilize and confidence returns, though technical signals suggest ongoing pressure.
Bitcoin's 10% drop from its recent all-time high highlights its vulnerability to macroeconomic shifts and market uncertainty. In the short term, bearish sentiment and technical setbacks could limit recovery. However, given Bitcoin's historical resilience, a stabilization of economic factors might foster a gradual rebound over the longer term.
Ether's dramatic 45% plunge indicates heightened market volatility and investor caution. The steep decline suggests immediate pressure on liquidity and confidence, which may be prolonged unless there is a significant turnaround in market sentiment. Long-term prospects for ETH will depend on the broader crypto market recovery and renewed institutional interest.