Coinbase experienced a significant 31% drop in the first quarter of 2025, marking its worst performance since the 2022 FTX collapse.
Cryptocurrency Market Situation
The broader crypto market has struggled, with major cryptocurrencies also facing losses. Bitcoin, which drives much of Coinbase's trading activity, has fallen 20% from its January high of $107,180 to $87,000 by late February. Inflation concerns and proposed tariffs have added to market uncertainty. Currently, the price of Bitcoin is around $85,000.
Technical Analysis of Coinbase Stocks
Coinbase’s stock chart shows a descending broadening formation, a pattern that often signals more downside. The 50-day moving average is nearing a “death cross” with the 200-day moving average, indicating potential further losses.
Analysts' Evaluations and Forecasts
Mizuho Securities lowered its price target from $280 to $217, which is 16% above the current price of $186.80. However, H.C. Wainwright remains optimistic, raising their target to $350, citing strong earnings and Coinbase’s growing market share.
The decline in Coinbase's stock highlights the deepening crisis in the cryptocurrency market, with many investors seeking safe havens. Technical indicators warn of further potential losses.
