Coinbase’s stock price declined massively on October 31, marking the biggest single-day drop since July 2022.
Coinbase, a global crypto exchange traded publicly in the United States, witnessed its largest single-day stock price drop in over two years on October 31. COIN closed the day trading at a little over $179, marking a 15% decline because of its earnings missing what analysts estimated. It underperformed Wall Street’s expectations by 11%.
This is its largest decline since July 26, 2022, when the price took a tremendous bludgeoning of about 21% due to a US Securities and Exchange Commission (SEC) investigation. Still, traders and investors believe COIN’s price will bounce back strong next year.
COIN’s Price Could Rebound in 2025
“Everyone (is) overblowing the Coinbase earnings call,” said pseudonymous crypto investor Pickle on X. They added, “Summer is the quietest period for all markets, crypto was chopping and retail interest waned.” Pickle also mentioned that Coinbase’s Q1 and Q2 earnings in 2025 would be “ridiculous” and estimated its stock price to go up to $600.
Geert Lysen, a stock market analyst, highlighted that COIN’s price remained above the trendline despite taking the massive trimming and that this was just an opportunity to buy the dip. He said the stock was “still holding above the trendline, and for me, it’s a play on the rise of Bitcoin (which wasn’t happening during the last quarter).” However, Lysen mentioned being prepared if the price drops below the trendline, saying, “So I doubled down on the dip today! $COIN … (but I could change my mind if it dips below support!)”
Bitcoin is exchanging hands at over $70,000 at the time of writing—a few thousand below its all-time high (ATH) of $73,679 achieved earlier this year. It has rebounded from contained price action since its price declined from its ATH, which Lysen feels will occur with COIN. However, with only a few days to go for the US Presidential election scheduled for November 5, market participants expect volatility in BTC’s price on both sides. It could make it past the ATH or fall to lower levels—time will tell.
While Coinbase’s underperformance in Q3 2024 was a part of the stock price’s decline, October 31 was a bad day for stocks across the board. Financial analyst Andrew Lokenauth mentioned that about a billion dollars was wiped away from the market. “Over $950 billion was wiped out from the stock market today,” his X post read.
