Coinbase slumps as Wall Street woes worsen: Will there be a prolonged downturn?
Coinbase Global Inc. saw a significant drop on Monday, closing at $263.95 per share — a 7.06% decline — and continued to slide in pre-market trading early Tuesday.
To put it plainly: the Brian Armstrong-led company, whose transaction-fee revenue is heavily tied to crypto asset prices and trading volumes, is vulnerable.
- Coinbase saw a significant 7.06% drop in stock price on Monday, closing at $263.95 per share, continuing to slide in pre-market trading on Tuesday.
- The latest drop in Bitcoin below $90,000, revisiting levels last seen in April, negatively impacted Coinbase. Other major cryptocurrencies like Ethereum, Cardano, and Solana also saw declines.
- Despite reporting strong Q3 earnings ($1.9 billion in revenue), Coinbase has faced setbacks, including scrapping a $2 billion acquisition of BVNK.
Coinbase currently holds $1.6 billion in Bitcoin.
The dip came amid a broader market slump, spurred by a combination of factors, including the ongoing crypto-market crash and growing anxiety over tariffs, inflation, and other economic pressures facing the Trump administration.
The latest downturn in the crypto market hit Coinbase hard, as Bitcoin (BTC) tumbled below $90,000, revisiting levels last seen before its significant plunge to $74,400 in April — a drop also linked to concerns over President Trump’s tariff policies.
And it’s not just Bitcoin. See below:
| CRYPTOCURRENCY | PRICE | 24h GAINS +/- |
| Cardano (ADA) | $0.4672 | -5% |
| Ethereum (ETH) | $3,012.02 | -5.3% |
| Solana (SOL) | $135.53 | -3.1% |
| XRP (XRP) | $2.16 | -3.7% |
| Dogecoin (DOGE) | $0.1551 | -3.6% |
| BNB (BNB) | $906.98 | -2.8% |
Coinbase has been hot and cold as of late. Indeed, it reported an impressive third-quarter earnings report — $1.9 billion in revenue, a 25% increase from the previous quarter.
It also forged a new partnership with JPMorgan to support JPM Coin.
However, the soon-to-be-based-in-Texas company reportedly called off a $2 billion acquisition with BVNK, a London-based startup specializing in cross-border payments using stablecoins.
The deal was meant to be a strategic move to diversify beyond crypto trading fees and position itself as a broader fintech player. BVNK, which has attracted investment from Citi Ventures and Visa Ventures, would give Coinbase a foothold in the growing stablecoin economy.
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