Coinbase Stock Slips As Bitcoin Pullback Hits Crypto Sentiment

Coinbase Global Inc (NASDAQ:COIN) is trading lower alongside a pullback in major cryptocurrencies, with Bitcoin (CRYPTO: BTC) changing hands around $73,000 at the time of publication. Here’s what investors need to know.

• Coinbase Global shares are retreating from recent levels. Why is COIN stock dropping?

Coin Stock Falls When Crypto Falls

For stock investors, it's important to remember that COIN is essentially a leveraged play on overall crypto sentiment. When Bitcoin and other digital assets drop, trading activity often cools, and that hits Coinbase directly in its main profit engine: transaction fees.

How Coinbase Makes Its Money

Coinbase runs one of the largest regulated crypto exchanges in the U.S. Its core business is straightforward: it matches buyers and sellers of cryptocurrencies and charges a fee each time a trade is executed.

The more people trade, especially during bull markets, the more fee revenue Coinbase generates. When prices fall, retail traders typically step back, volumes shrink and the market starts pricing in slower revenue growth for COIN.

Beyond trading, Coinbase earns money from staking, interest on customer balances and subscription-style services, but these still sit behind trading in terms of investor focus. For retail investors, the takeaway is simple: buying Coinbase stock is not just a bet on the company's execution, it's a high-beta bet on the entire crypto market cycle.

When crypto rallies, COIN can outperform. When crypto stumbles, as it is Wednesday afternoon, the stock usually feels it fast.

Is A Rebound On The Horizon?

Currently, Coinbase is trading 26.3% below its 20-day simple moving average (SMA) and 42% below its 100-day SMA, indicating significant weakness in its price action. Shares have decreased 40.98% over the past 12 months and are positioned closer to their 52-week lows than highs, reflecting ongoing bearish sentiment.

The RSI is at 21.04, which is considered oversold, suggesting that the stock may be due for a rebound. Meanwhile, the MACD is below its signal line, indicating continued bearish pressure on the stock.

The combination of oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock is oversold, the bearish trend remains intact.

• Key Resistance: $225.00
• Key Support: $142.50

COIN’s Business Model

Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy.

As the market for cryptocurrencies continues to evolve, Coinbase’s role becomes increasingly significant, especially during periods of volatility. The company’s ability to adapt to regulatory changes and market demands will be crucial for its long-term success.

Earnings Cliff Ahead? A Stark Year-Over-Year Drop

Investors are looking ahead to the next earnings report on Feb. 12.

• EPS Estimate: $1.07 (Down from $3.39 YoY)
• Revenue Estimate: $1.86 billion (Down from $2.27 billion YoY)
• Valuation: P/E of 15.5x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $370.04. Recent analyst moves include:

• Piper Sandler: Neutral (Lowers Target to $270.00) (Jan. 14)
• Oppenheimer: Outperform (Lowers Target to $370.00) (Jan. 12)
• Barclays: Equal-Weight (Lowers Target to $258.00) (Jan. 8)

Valuation Insight: While the stock trades at a fair P/E multiple, the strong consensus and 68% expected earnings decline suggest analysts view this growth as justification for the 125% upside to analyst targets.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Coinbase Global, highlighting its strengths and weaknesses compared to the broader market:

• Value: 57.11 — The stock is trading at a fair valuation relative to peers.
• Momentum: 4.47 — The stock is underperforming the broader market.

The Verdict: Coinbase Global’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Value score indicates a fair valuation, the extremely low Momentum score warns that the stock is priced for perfection—investors should proceed with caution.

Top ETF Exposure

• ARK Fintech Innovation ETF (NYSE:ARKF): 6.23% Weight
• ARK Blockchain & Fintech Innovation ETF (NYSE:ARKF): 5.53% Weight
• GraniteShares 2x Long COIN Daily ETF (NASDAQ:CONL): 66.67% Weight

Significance: Because COIN carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

COIN Shares Fall Sharply Wednesday

COIN Price Action: Coinbase Global shares were down 7.22% at $166.70 at the time of publication on Wednesday, according to Benzinga Pro data.

The chart shows COIN's share price over the trailing year, peaking at $444.64 around mid-2025 before sliding sharply toward its low of $142.58 by Wednesday afternoon.

Short- and medium-term moving averages (20- and 50-day) rolled over and crossed below the longer-term 200-day average during the second half of the period, confirming a shift from a strong uptrend to a sustained downtrend.

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