Coinbase Faces Worst Quarter Since FTX Collapse as Crypto Markets Struggle

In Brief:

COIN stock dropped 30% in Q1 2025, its steepest decline since FTX's collapse.

Broader market downturn driven by macro uncertainty, tariffs, and investor fear.

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Coinbase has posted its worst quarterly performance since the collapse of FTX in late 2022, with shares falling 30% in Q1 2025. The decline mirrors a broader slump across the crypto sector, with Ethereum plunging 45% and Bitcoin down 10% during the same period.

According to Bloomberg, other major crypto-exposed stocks like Galaxy Digital, Riot Blockchain, and Core Scientific also saw deep losses as investor sentiment weakened.

The decline comes amid growing global uncertainty over Trump administration tariffs, looming recession fears, and a general risk-off environment across financial markets.

“In a risk-off mood, no asset is safe—stocks, crypto, all get hit,” one investor commented on X.

Coinbase, which relies heavily on altcoin activity and trading volumes, is particularly exposed. Analysts note that its model is sensitive to downturns in speculative trading, especially when altcoin interest fades.

The news follows reports that Coinbase users lost more than $46 million to scams in March, further eroding confidence.

Meanwhile, traditional assets like gold have rallied, posting their best quarter since 1986. MicroStrategy remains one of the few crypto-aligned firms still in the green, bolstered by its Bitcoin treasury strategy.

As macroeconomic concerns intensify, crypto markets continue to face pressure despite institutional interest and favorable political developments.

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