Coinbase stock price has crashed into a bear market this year as the crypto industry remains on edge, with most coins crashing. COIN shares plunged to a low of $176 this month, down by almost 50% from the year-to-date high. Its market cap has dropped from $86 billion to $48 billion, leading to a $38 billion wipeout.
Coinbase news: to acquire Deribit
Coinbase, the biggest crypto exchange in the US, made headlines this month. A key Coinbase news was the decision by the Securities and Exchange Commission (SEC) to end a case that has been going on for a while. Under Gary Gensler, the agency accused Coinbase of offering unregistered securities on its platform.
The SEC has also ended other similar lawsuits against other top players in the crypto industry like Uniswap, Ripple Labs, Kraken, and OpenSea, the NFT giant.
Another top Coinbase news came from Bloomberg, which reported that the company was considering making a bid for Deribit, a top crypto derivatives company. This would be a big move as it would transition it into the biggest derivatives player in the crypto industry. Estimates are that the deal will value Deribit at about $5 billion.
There are signs that crypto companies are considering making large purchases this year. Just this week, Kraken acquired NinjaTrader in a $1.5 billion deal.
These actions are happening at a time when the crypto industry is going through major challenges. Bitcoin price remains in a correction after falling from an all-time high of $109,300 to $84,000 today. Ethereum price has plunged from $4,080 to $1,800, while most altcoins have imploded. Also, crypto ETFs have lost substantial assets this year.
Coinbase is also battling heightened competition from the likes of Binance, MEXC, Kraken, OKX, HTX, and other top crypto exchanges.
COIN growth to slow this year
The most recent financial results showed that Coinbase’s business did well in the fourth quarter as crypto prices surged. Its quarterly revenue rose from $904 million in Q4’23 to $1.128 billion in Q4’24.
The most important detail in its report was that it has almost balanced its transaction revenue with that of its subscriptions. Its transaction revenue rose to $572 million, while the subscription and services segment made $641 million.
The subscription revenues come from different areas. Most of it comes from stablecoins, while the rest comes from blockchain rewards, interest and finance fees, custodial fees, and other services. This division has higher margins, and its business is more stable.
Wall Street analysts expect that Coinbase’s business will slow down in the coming months as crypto prices ease. The average estimate is that its revenue will be $2.23 billion this quarter, up by 35% from the same period last year. It will then make $8.12 billion this year. However, this growth will depend on the performance of the crypto market.
Coinbase stock price analysis
COIN chart by TradingView
The daily chart shows that the COIN share price has crashed in the past few months, falling from a high of $350 to $190. It is about to form a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have formed a bearish crossover pattern.
The stock has also formed a bearish pennant pattern, a characterized by a long vertical line and a triangle pattern. Therefore, the Coinbase stock price will likely have a strong bearish breakdown in the coming days. The next key support level to watch will be at $150, down by 20% from the current level.
The post What next for Coinbase stock after the $38 billion wipeout? appeared first on Invezz
