Coinbase Stock Crash

Coinbase’s stock price has fallen into a bear market, affected by a struggling crypto industry. COIN shares hit a low of $176 this month, nearly 50% down from the year’s high. Its market cap plummeted from $86 billion to $48 billion, equating to a $38 billion loss.

Key Coinbase News: Acquisition of Deribit

Coinbase, the largest crypto exchange in the US, made headlines with notable updates. The SEC concluded a longstanding case against Coinbase regarding unregistered securities on its platform.

The SEC also dismissed lawsuits against other prominent crypto entities, including Uniswap and Ripple Labs.

Additionally, Bloomberg reported Coinbase is considering a bid for Deribit, a major crypto derivatives firm, valued at around $5 billion. This acquisition would position Coinbase as a leading player in the derivatives market.

As companies like Kraken pursue acquisitions—such as their $1.5 billion purchase of NinjaTrader—signs of consolidation in the industry are evident amid ongoing challenges. Bitcoin prices corrected from an all-time high of $109,300 down to $84,000. Ethereum also dropped significantly from $4,080 to $1,800, with many altcoins experiencing severe declines. Crypto ETFs have also suffered considerable asset losses this year, and Coinbase faces increased competition from exchanges like Binance and Kraken.

Slowing Growth for Coinbase

Recently released financial results showed a strong Q4, driven by rising crypto prices. Quarterly revenue increased from $904 million in Q4’23 to $1.128 billion in Q4’24. Transaction revenue reached $572 million, while subscriptions and services generated $641 million. The latter includes several income sources, such as stablecoins and custodial fees, providing higher margins and more stability.

However, Wall Street analysts anticipate slowing growth for Coinbase as crypto prices fall. Projections estimate revenue at $2.23 billion this quarter—up 35% from the previous year—and $8.12 billion annually, contingent on crypto market performance.

Coinbase Stock Price Analysis

The COIN share price chart indicates a significant decline over the past months, with a drop from $350 to $190. A death cross pattern is forming, indicating potential bearish trends as the 50-day and 200-day Exponential Moving Averages (EMA) intersect.

A bearish pennant pattern is also emerging, suggesting a probable sharp downward movement soon. Investors should monitor the next support level at $150, which is a further 20% decline from current levels.

The post originally appeared on Invezz.