Coinbase Shares Drop Over 30% in Q1, Worst Since FTX Collapse

Coinbase (COIN) shares have dropped over 30% in Q1, marking the worst performance since the FTX collapse. This decline is part of a broader trend impacting major crypto-related stocks such as Galaxy Digital (GLXY.TO), Riot Platforms (RIOT), and Core Scientific (CORZ).

Market Overview

Bitcoin has fallen over 20% from its all-time high.
Ethereum has decreased more than 45% in value.
The S&P 500 Index is nearing its worst quarter since mid-2022.

Concerns over the US economy, exacerbated by trade war tensions, are influencing market volatility. Analyst Owen Lau highlighted macroeconomic factors over fundamental issues as key drivers of investor sentiment. The risk of recession has increased volatility in higher-risk crypto-linked stocks.

Current Challenges

Investments in crypto companies carry risks, including potential bankruptcy.
Bitcoin prices recently fell to around $83,000, significantly below the peak of over $109,000 on Inauguration Day.
Many crypto-related firms have lost gains made after the election, though some, like MicroStrategy (MSTR), remain positive since November 5.

The cryptocurrency industry's influence in Washington is growing, but this has not yet led to a market rebound. Analyst Connor Loewen noted the need for new catalysts to improve investor sentiment.