Coinbase’s share price experienced its largest daily drop in over two years amid a broader stock market decline, yet traders remain bullish on the firm’s earnings prospects for 2025.
Shares in crypto exchange Coinbase Global Inc (COIN) have experienced its largest significant single-day decline in over two years after its latest earnings missed analyst estimates alongside a stock market plummet.
However, traders are confident that the stock will make a strong comeback in 2025.
On Oct. 31, COIN closed the trading day at $179.25, representing a 15.34% decline — the largest intraday drop since July 26, 2022, when the stock fell 21% amid a probe from the United States Securities and Exchange Commission.
COIN has seen a 1.43% rebound in after-hours trading. Source: Google Finance
“Q1 and Q2 earnings next year will be ridiculous,” crypto trader Pickle told their 16,100 X followers while claiming that “everyone overblowing the Coinbase earnings call.” On Oct. 30, Cointelegraph reported that Coinbase Q3 2024 earnings fell short of Wall Street analysts’ estimates by around 11%.
Traders show confidence in COIN performance
Pickle reiterated, “Summer is the quietest period for all markets, crypto was chopping, and retail interest waned,” before forecasting that COIN is set for “$600.”
The exchange saw transaction revenues fall 27% quarter over quarter to $573 million — however, it was an over 98% increase from Q3 2023.
Stock market commentator Geert Leysen pointed out that COIN’s price is still “above the trendline,” forecasting that the stock’s performance is a “play on the rise” of Bitcoin.
Source: Geert Leysen
Bitcoin is trading at $69,310, about 6.3% below its all-time high of $73,679 set in March. Traders are keeping a close watch on the upcoming United States election on Nov. 5, anticipating it could bring heightened volatility in either direction.
Meanwhile, pseudonymous crypto trader Cable finds it “wild” that COIN is still trading below its initial public offering (IPO) price of $250, the price at which the company went public in April 2021.
Oct. 31 was a tough day for the stock market overall, though, with financial analyst Andrew Lokenauth noting that “over $950 billion was wiped out from the market.”
MicroStrategy overtakes Coinbase market capitalization
Amid the stock market turmoil, traders recently took note of Michael Saylor’s MicroStrategy (MSTR) overtaking Coinbase in market capitalization.
MicroStrategy holds a market cap of $49.5 billion, surpassing Coinbase’s market cap of $44.54 billion.
It was only recently that Bitcoin analyst Tuur Demeester opined to his 283,500 X followers that Coinbase and MicroStrategy “is a battle of two archetypes.”
“One is the fox who distracts himself with hundreds of strategies; the other is the hedgehog who knows One Big Thing. This is “crypto investing” versus “there is no second best,” Demeester wrote in an Oct. 9 X post.
