Coinbase has experienced a significant decline in its stock value, dropping approximately 30% in the first quarter of 2025.
It’s been a tough first quarter for Coinbase’s stock. Coinbase (NASDAQ: COIN) experienced a 31% decline, marking its worst quarterly performance since the FTX collapse at the end of 2022. The broader crypto market hasn’t fared much better, with Bitcoin dropping over 10% and Ether plummeting by 45%.
Several factors have contributed to this recent decline. Bitcoin (BTC), a major driver of Coinbase’s trading volume, has fallen from its January 21 all-time high of $107,180.92 to a three-month low of $87,000 on February 25.
This 20% decrease is attributed to economic uncertainties, including proposed tariffs and inflation concerns.
The broader cryptocurrency market has also been affected. In March, crypto-related stocks, including Coinbase, experienced significant declines following a 4% drop in Bitcoin’s price to over $83,700. Coinbase shares fell by 7% during this period.
At the time of writing, Bitcoin is trading at $85,000.
Will it get worse for Coinbase?
Technical analysis indicates potential further declines for Coinbase’s stock. The chart shows a descending broadening formation, with the 50-day moving average approaching a death cross with the 200-day moving average.
Despite these challenges, some analysts believe the selloff may be exaggerated. Mizuho Securities reduced Coinbase’s price target from $280 to $217, which remains about 16% above the current trading price of $186.80.
H.C. Wainwright analysts raised their price target for Coinbase to $350 following a strong fourth-quarter earnings report, citing the company’s market share gains and bullish management outlook.
