Coinbase has faced a notable drop in its stock price, with a decline of roughly 30% within the first quarter of 2025.
The first quarter has been difficult for the performance of Coinbase’s stock. The company (NASDAQ: COIN) saw a 31% drop, marking its poorest quarterly outcome since the FTX incident in late 2022. The overall cryptocurrency market has not fared any better, with Bitcoin falling more than 10% and Ether experiencing a 45% decline.
Several elements have contributed to this recent downturn. Bitcoin (BTC), a key factor in driving Coinbase’s trading activity, has dropped from its all-time high of $107,180.92 on January 21 to a three-month low of $87,000 as of February 25.
This 20% reduction stems from economic uncertainties, including proposed tariffs and inflation worries.
The wider cryptocurrency landscape has also taken a hit. In March, stocks related to crypto, including Coinbase’s, saw considerable drops following a 4% decrease in Bitcoin’s price to over $83,700. During this timeframe, Coinbase’s shares fell by 7%.
As of now, Bitcoin is trading around $85,000.
Is the situation going to worsen for Coinbase?
Technical analysis suggests the possibility of further downturns for Coinbase’s stock price. The chart presents a descending broadening pattern, with the 50-day moving average nearing a death cross with the 200-day moving average.
Although these challenges persist, some experts argue that the panic selling might be overdone. Mizuho Securities lowered Coinbase’s price target from $280 to $217, which still represents about a 16% increase over the current trading price of $186.80.
Additionally, H.C. Wainwright analysts increased their price target for Coinbase to $350 following a strong earnings report for the fourth quarter, highlighting the company’s gains in market share and a positive outlook from management.