As the cryptocurrency market experiences intense turbulence, Coinbase (COIN) stock has continued its steep downward trajectory. The company, heavily influenced by the performance of Bitcoin and other digital assets, has seen its stock plunge to $166, representing a significant 62% drop from its all-time high.
Why is Coinbase’s Stock Falling?
The ongoing cryptocurrency crash is the primary driver of Coinbase’s struggles. Bitcoin’s price has fallen dramatically, hovering around $72,000, with many analysts predicting a further dip to $70,000. Coinbase holds a substantial amount of Bitcoin, approximately 14,548 coins valued at over $1 billion. At Bitcoin’s peak, these assets were worth over $1.8 billion, highlighting how deeply the market dip has affected the company.
Additionally, Coinbase derives most of its revenue from transaction fees. As trading volume declines across the crypto market, the company’s main revenue stream is under significant pressure. In the most recent quarter, Coinbase reported transaction revenue of $1 billion, while subscription and services revenue amounted to $746 million.
What’s Next for Coinbase?
The next big event for Coinbase stock is its upcoming earnings report, expected in the near future. Wall Street analysts are cautious, forecasting limited growth for the firm. Data compiled by Yahoo Finance indicates the company’s revenue may have dropped by 18% in the fourth quarter, landing at $1.86 billion. Despite an anticipated annual revenue growth of 10% year-over-year to $7.27 billion, challenges persist.
Analysts have projected first-quarter 2026 revenue at $1.91 billion, down 6% year-over-year, and annual revenue for the year potentially surpassing $8.2 billion—an increase of 13% compared to the previous year.
Analyst Predictions – A Bearish Outlook
Wall Street sentiment around Coinbase has become increasingly bearish. Several analysts have downgraded the stock, including Ed Engel of Compass Point, who downgraded it to “sell” with a revised target of $190. Similarly, Piper Sandler lowered their target price from $350 to $270, while Rothschild adjusted their projection slightly from $404 to $403.
The consensus estimate for Coinbase stock now sits at $356, a reduction from $397 three months ago. This declining optimism highlights the uncertain path ahead for the company, which remains tied to the unpredictable nature of the cryptocurrency market.
Price Chart Insights
A daily timeframe chart reveals a consistent downward trend in Coinbase stock since July of last year. From its peak of $443, the price has fallen to $168, breaking through key support levels. Notably, the stock remains below the 50-day and 100-day Exponential Moving Averages (EMA).
The Relative Strength Index (RSI) has dropped to 18—its lowest level since May 2022. If prices fall below the next critical support level of $141, the stock may continue its freefall to $125. However, a recovery could be possible later this year if the cryptocurrency market stabilizes and rebounds.
Considerations for Investors
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Coinbase stock faces considerable challenges, but with the right strategy and tools, interested investors have the opportunity to navigate these turbulent waters effectively.
