The Coinbase share price is in a bearish market as most crypto coins are crashing. COIN’s shares fell to $176 in this month. This is almost half the price of their year-to date high. The market capitalization has fallen from $86 to $48 billion. This is a loss of $38 billion.
Deribit to be acquired by Coinbase
This month, Coinbase made the headlines as the largest crypto exchange in America. The Securities and Exchange Commission’s (SEC) decision to close a long-running case was a major Coinbase story. Gary Gensler was the head of this agency, which accused Coinbase for offering securities that were not registered on their platform.
Other top crypto players like Uniswap RippleLabs Kraken and OpenSea have also been cleared of similar suits by the SEC.
Bloomberg reported on another top Coinbase story, that the company is considering a bid to acquire Deribit, one of the top companies in crypto derivatives. It would be an important move, as this would make it the largest derivatives company in the cryptocurrency industry. Deribit is estimated to be worth $5 billion.
Crypto companies may be considering large-scale purchases in 2018. Kraken purchased NinjaTrader for $1.5 billion just this week.
The crypto industry faces major challenges at the moment. Bitcoin’s price is still in correction mode after dropping from its all-time peak of $109 300 to today’s $84,000. Ethereum’s price plummeted from $4,080 down to $1,800 while the majority of altcoins collapsed. Crypto ETFs also lost a lot of money this year.
Coinbase also faces increased competition from Binance, MEXC, Kraken, OKX, HTX, and other leading crypto exchanges.
The COIN market will slow down this year
Coinbase did very well during the fourth quarter, as cryptocurrency prices surged. The company’s revenue grew from $904m in Q4’23 to $1.127b in Q4’24.
Its report revealed that its revenue from transactions and subscriptions has been almost equalized. The transaction revenues rose from $572 to $641 millions.
Subscription revenues are generated in different ways. The majority of the revenue comes from stablecoins. The business of this division is stable and has higher margins.
Wall Street analysts predict that Coinbase will see its business slow in the months to come as cryptocurrency prices decline. It is estimated that Coinbase’s revenue for this quarter will reach $2.23billion, which represents a 35% increase over the same time last year. The company will make $8.12 Billion this year. This growth, however, will be dependent on how the cryptomarket performs.
Stock price analysis by Coinbase
TradingView COIN Chart
On the daily chart, the COIN price fell from $350 at its peak to just $190 in recent months. The 50-day and the 200-day Exponential Moving Averages have both formed a downward crossover pattern.
Stocks have also shown a pennant bearish pattern. This pattern is characterized by an extended vertical line, and triangle patterns. The Coinbase share price is likely to have a bearish breakout in the next few days. Next, the key level of support to be watched is $150. This will represent a 20% drop from its current price.
The post Coinbase Stock: What Next? This post may change as new information unfolds
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