Coinbase stock fell 33% in the first quarter of 2025, making it the company’s worst quarter since FTX collapsed in 2022. Despite this decline, Coinbase expects to report subscription revenues of between $685 million and $765 million, with analysts estimated first quarter revenue of $1.87 billion.
Bitcoin has dropped by more than 20% from an all-time high, while Ethereum has dropped by more than 45%. Cryptocurrency stocks followed a similar pattern. Marathon Digital Holdings lost more than 37%, riot platforms fell by 32%, and BitFarms erased almost half of its value. Hut 8 has dropped by nearly 45%, Hive Digital Technologies has dropped by over 50%, and hardware producer Canaan Creative has lost 58.4%.
The broader stock market also struggled, with the S&P 500 index exceeding 4.75% in the first quarter. Analysts attribute this to growing fears about US President Donald Trump’s trade policy. The report suggests traders are anticipating a new tariff announcement on April 2nd, increasing economic uncertainty. Alex Obchakevich of Obchakevich Research said Trump’s tariffs are making the market unpredictable. Oppenheimer analyst Owen Lau noted that concerns about tariffs, potential trade wars and the fear of a recession are driving investors away from high-risk assets, including cryptocurrencies.
The Strategy (previously the MicroStrategy) is one of the few crypto-related stocks that are relatively stable, down just 3.95% from $300.11 to $288.27. Analysts say its Bitcoin Holdings and its strong 2024 performance helped prevent deeper losses.
Bitcoin hit a high of over $109,000 at Trump’s inauguration in January, but has since dropped to around $83,000. This decline was driven in part by Trump’s recent announcement of a strategic Bitcoin reserve that disappointed investors in hopes of government support.
Crypto stocks surged after Trump’s election victory, but then gave up on those profits. The industry has gained influence in Washington and is approaching traditional financial markets, but this has not yet led to a recovery. Cryptocurrency analyst Connor Lowen said the market may need new catalysts to regain investor trust as the excitement seen at the beginning of the year has faded.