Key Takeaways
- Coinbase stock fell 15.3% in its largest single-day decline since 2022.
- Q3 earnings missed analyst estimates by 11%, hitting revenues.
- MicroStrategy's market cap surpassed Coinbase amid the downturn.
On October 31, Coinbase Global (COIN) experienced its most significant single-day decline in over two years, falling 15.3% to close at $179.25.
This marked its steepest drop since July 2022, spurred by an earnings report that missed Wall Street estimates by 11% amid a broader market downturn.
Coinbase’s Q3 revenue saw a 27% drop in transaction earnings, totaling $573 million, though this figure represented a 98% increase from the previous year.
Mixed sentiment
Despite the drop, many traders expressed confidence in Coinbase’s long-term potential, with prominent traders like “Pickle” predicting strong Q1 and Q2 earnings in 2025, expecting COIN to eventually reach $600.
Analyst Geert Leysen also maintained a positive outlook, noting that COIN remains above its trendline and ties closely to Bitcoin’s performance, currently 6.3% below its all-time high.
Market shift
In addition to Coinbase’s struggles, financial analyst Andrew Lokenauth reported that $950 billion was wiped from the market on October 31.
Meanwhile, MicroStrategy, led by Bitcoin advocate Michael Saylor, overtook Coinbase’s market capitalization, reaching $49.5 billion versus Coinbase’s $44.5 billion.
