Coinbase and Crypto Stocks Experience Pullback Amid Bitcoin Retreat

Crypto-related stocks, including Coinbase (COIN), faced a downturn at the start of the week as traders took profits following a strong rally. Major players like Marathon Digital Holdings (MARA) and Circle (CRCL) led the decline, dropping roughly 6%, while MicroStrategy (MSTR) and others also saw losses. The pullback mirrored a retreat in Bitcoin and Ether prices, signaling a temporary cooling-off period after recent gains.

Crypto Stocks Retreat Post-Rally as Bitcoin and Ether Pull Back

Crypto-related stocks faced downward pressure to start the week as traders locked in profits following a sharp Friday rally. Marathon Digital Holdings (MARA) and Circle (CRCL) led the decline, dropping roughly 6% in early trading. Bullish (BLSH) fell 5%, while MicroStrategy (MSTR) slipped 3%. Major platforms with crypto exposure—including Coinbase (COIN), eToro (ETOR), and Robinhood (HOOD)—also traded lower.

The selloff mirrored a broader retreat in digital assets. bitcoin (BTC) and ether (ETH) slid approximately 4% and 5.5%, respectively, over 24 hours, retreating from weekend highs. Friday's rally had been fueled by dovish remarks from Federal Reserve Chair Jerome Powell, which briefly reignited risk appetite across markets. Investors interpreted his comments as a potential signal of rate cuts next month.

Traditional markets showed little movement, with the S&P 500, Nasdaq, and Dow Jones Industrial Average flatlining. Gold prices and 10-year Treasury yields held steady. "The crypto market is grappling with macro pressures: shifting Fed signals, dollar strength, and risk reduction," noted LMAX strategist Joel Kruger. "While Powell hinted at rate cuts, the nuance and less dovish undertone left markets jittery."

Crypto-Friendly Xapo Bank Hires Former FalconX Executive as Head of Relationship Management

Xapo Bank, a Gibraltar-based institution regulated by the Gibraltar Financial Services Commission, has appointed Tommy Doyle as its new head of relationship management. Doyle brings a wealth of experience from both traditional finance and the crypto sector, having previously served as head of Europe at FalconX and in hedge fund sales at Coinbase.

His tenure at Wall Street giants like Goldman Sachs, Citi, and Bank of America underscores the growing convergence of traditional and digital finance. Xapo's recent launch of bitcoin-backed loans further signals its commitment to bridging these worlds.

Crypto Wallet Linked to Coinbase Hack Spends $8M on Solana Purchase

A wallet flagged by blockchain analysts as the perpetrator of a $300 million theft from Coinbase users has purchased $8 million worth of solana (SOL). The funds, converted from DAI to USDC and bridged to the Solana network, acquired 38,126 SOL at approximately $209 per token. At current prices near $202, the investment sits at a paper loss.

The same wallet previously liquidated 26,762 Ether (ETH) worth $69.25 million in July, followed by subsequent purchases of 5,512 ETH totaling $14.85 million. These transactions reveal an active—though not always profitable—trading strategy involving stolen assets.

Separately, the Radiant Capital exploiter has doubled stolen funds to $105 million through ETH trades. Onchain evidence suggests both incidents may stem from sophisticated social engineering attacks targeting exchange users.

US Banks Push for Stablecoin Regulation Amid $6.6T Deposit Flight Concerns

Wall Street banks are intensifying efforts to close a regulatory loophole that allows crypto platforms to offer yields on stablecoins, warning of potential trillion-dollar deposit outflows. The GENIUS Act, aimed at governing the $288 billion stablecoin market, prohibits issuers like Circle and Tether from paying interest directly but permits exchanges to share revenue with users.

Exchanges such as Coinbase and PayPal currently provide nearly 4% APY on stablecoin balances, drawing scrutiny from bank associations. The American Bankers Association and others argue this creates an uneven playing field, risking deposit flight during market stress—a scenario the Treasury estimates could impact up to $6.6 trillion in bank deposits.

Crypto advocates counter that banks are stifling competition to protect traditional models. The Blockchain Association and Crypto Council for Innovation have lobbied senators, framing the debate as a clash between innovation and legacy finance.

Global Exchanges Warn Tokenised Stocks Could Threaten Market Trust

The World Federation of Exchanges (WFE) has issued a stark warning to regulators about the risks posed by tokenised stocks. Representing major global exchanges, the UK-based group sent letters to the SEC, ESMA, and IOSCO, urging swift action as crypto platforms expand into tokenised equity products.

Robinhood's recent launch of tokenised stocks in Europe and Coinbase's pursuit of U.S. approval highlight the growing trend. Proponents argue these tokens enable 24/7 trading, lower costs, and faster settlements. But the WFE counters that such benefits come with significant risks, including potential reputational damage for issuers.

Market integrity concerns are paramount. The WFE alleges these products mislead investors by falsely equating tokenised assets with traditional stocks. "We are alarmed at the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenised U.S. stocks," the letter stated.

Regulatory clarity is now in focus. The WFE demands explicit rules on ownership rights, custody responsibilities, and securities enforcement. CEO Nandini Sukumar notes that share issuers themselves have raised red flags, with some companies expressing concerns about reputational risks tied to tokenised versions of their stock.

Brian Armstrong’s $1M Bitcoin Forecast: How to Position Your Portfolio Now

Coinbase CEO Brian Armstrong predicts Bitcoin could reach $1 million by 2030, citing regulatory clarity, institutional inflows, and government adoption as key drivers. His confidence stems from the growing acceptance of crypto ETFs and national reserves holding Bitcoin.

Armstrong emphasizes that finalizing U.S. market structure and stablecoin rules will boost institutional confidence, potentially increasing Bitcoin allocations from the current 1% to significantly higher levels. The U.S. government's creation of a regulatory framework is seen as a pivotal moment for mainstream adoption.

Meanwhile, emerging projects like MAGACOIN FINANCE are gaining traction as investors seek high-growth opportunities beyond Bitcoin. The market's appetite for early-stage tokens with exponential return potential is stronger than ever.