Coinbase Observes Bitcoin’s Unexpected Drop Despite Favorable Macro Conditions

Bitcoin experienced a surprising decline even as weak U.S. jobs data increased the likelihood of a Federal Reserve rate cut, typically a bullish signal for risk assets. The July nonfarm payrolls report showed only 73,000 jobs added, significantly below expectations, with downward revisions eliminating 258,000 positions from previous months. This marks the weakest three-month job growth since 2020. While Treasury yields fell and Gold rallied 1.5%, cryptocurrencies and tech stocks failed to follow suit, leaving market participants questioning the divergence. Coinbase analysts suggest this may reflect short-term liquidity dynamics rather than a fundamental shift in crypto's long-term trajectory.

Bitcoin Drops Amid Weak U.S. Jobs Data as Fed Rate Cut Odds Surge

Bitcoin tumbled despite a soft U.S. jobs report that should have buoyed risk assets. July's nonfarm payrolls added just 73,000 jobs—far below expectations—while downward revisions erased 258,000 positions from prior months. The data marks the weakest three-month stretch since 2020.

Treasury yields cratered as traders priced in a 75% chance of a September Fed rate cut. Gold rallied 1.5%, but crypto and tech stocks bucked the trend. Bitcoin slid alongside a 2.5% Nasdaq plunge. Coinbase cratered 18% post-earnings, while Bitcoin miner Riot Platforms lost 17%.

Market sentiment splits between two narratives: weak data fuels hopes for dovish policy, yet recession fears overshadow earnings outlooks. As The Kobeissi Letter noted, the jobs report either signals impending labor market weakness or flawed data—neither scenario inspires confidence.

XRP Outperforms Ethereum in Coinbase Retail Revenue for Q2 2025

XRP has surpassed ethereum in retail transaction revenue on Coinbase for the second consecutive quarter, maintaining its lead despite Ethereum's market resurgence. The digital asset accounted for 13% of consumer transaction revenue, narrowly edging out Ethereum's 12%. This follows XRP's dramatic Q1 surge to 18%, up from 10% in Q4 2024, signaling sustained retail interest.

The growth comes against a backdrop of declining platform revenue. Coinbase reported a 39% quarterly drop in transaction revenue to $764 million, with total net revenue of $1.5 billion falling short of Wall Street's $1.59 billion projection.

Legal clarity surrounding XRP has been a key driver of its performance. The SEC's withdrawal of its appeal in the Ripple case during Q1 effectively confirmed that secondary-market XRP sales don't constitute securities. "That legal win sparked a rally in XRP's price and retail interest in trading the token," noted Juan Leon of Bitwise Asset Management. XRP's combination of regulatory certainty, low transaction costs, and established market position continues to attract traders.

Tech and Crypto Assets Hit by Economic Turbulence

Markets wavered as cryptocurrencies and tech stocks faced significant declines amid renewed trade tensions and mixed economic indicators. Bitcoin's drop below $115,000 exacerbated losses across crypto-related stocks, with Coinbase, Riot Platforms, and CleanSpark among the hardest hit. The sector's volatility underscores its sensitivity to global economic shifts and monetary policy expectations.

Trade tensions resurfaced as the Trump administration threatened new tariffs, further unsettling investors. Risky assets, including cryptocurrencies, bore the brunt of the sell-off. Coinbase shares plummeted 16%, extending a downward trend that began earlier in the week. The correlation between Bitcoin's price action and crypto equities remained stark, highlighting the sector's interconnected risks.

This episode serves as a reminder of crypto's precarious position in turbulent markets. When macroeconomic headwinds emerge, digital assets often face disproportionate pressure compared to traditional risk assets. The coming weeks will test whether this weakness persists or if crypto markets can decouple from broader tech sector volatility.

U.S. Banks Accused of Launching “Chokepoint 3.0” to Target Crypto and Fintech

Andreessen Horowitz partner Alex Rampell has issued a stark warning: U.S. banks are allegedly rolling out "Chokepoint 3.0," a strategy to suppress fintech and crypto platforms by raising fees, restricting access, and blocking applications. Institutions like JPMorgan stand accused of increasing the cost of money transfers and limiting access to account data, potentially stifling competition and innovation in the crypto sector.

Industry leaders are calling for regulatory intervention to safeguard consumer choice and maintain a level playing field. The MOVE could disproportionately impact platforms such as Coinbase and Robinhood, which rely on seamless banking integration.

Top 5 Crypto Stocks To Watch In August As Corporate Earnings Shape Investor Sentiment

Coinbase Global Inc. (COIN), Marathon Digital Holdings (MARA), Robinhood (HOOD), Circle (CRCL), and MicroStrategy (MSTR) emerge as the top crypto-linked stocks to monitor this August. The spotlight intensifies as Q2 earnings reports begin rolling in, with Coinbase posting $1.42 billion revenue—a year-over-year increase but sequential decline amid broader crypto market weakness.

Bitcoin's 1.9% drop to $115,768 mirrors retreats across major altcoins including Ethereum (ETH), Solana (SOL), and XRP. This correlation underscores how crypto-native stocks like Coinbase remain tethered to digital asset market cycles, thriving during bull runs while facing headwinds in downturns.

MicroStrategy continues its unconventional strategy as a bitcoin proxy, while Marathon Digital serves as a pure-play mining stock. Payment infrastructure player Circle and retail trading platform Robinhood complete the roster of companies whose fortunes increasingly intertwine with crypto market dynamics.

Analysts Remain Bullish on Coinbase Despite Earnings Miss and Stock Plunge

Coinbase shares tumbled 17% on Friday following a Q2 earnings report that fell short of analyst expectations, with revenue hitting $1.5 billion—6% below estimates. The dip sent COIN to $314.69, 25% below its July peak of $419.78.

Market observers argue the sell-off is overdone. Strategic acquisitions and expansion into non-crypto services are expected to drive future growth. "This isn't a fundamentals story—it's a timing mismatch," said one analyst, pointing to upcoming partnerships that could broaden Coinbase's revenue streams.

Trading volume weakness appears cyclical rather than structural. The exchange's push into institutional services and global markets positions it to capitalize on the next crypto upturn. As one fund manager noted: "Liquidity begets liquidity—when markets turn, Coinbase will be the first beneficiary."