Coinbase Plummets 20%: Worst Weekly Drop Since September 2024 Sparks Market Jitters

Wall Street's favorite crypto punching bag takes another hit.

Coinbase shares cratered nearly 20% this week—their steepest decline in nearly a year. The bloodbath comes as traditional finance analysts suddenly remember crypto exchanges are, in fact, volatile assets (who knew?).

The numbers don't lie

That 20% nosedive marks the platform's worst performance since September 2024's regulatory scare. No fresh catalysts? No problem—the market's happy to reprice risk all on its own.

Silver lining playbook

Long-term holders are shrugging it off as noise. 'This is crypto winter's version of a summer sale,' quipped one trader while doubling down on COIN calls. Because nothing says 'prudent investing' like catching falling knives.

The dip buyers are circling, but smart money's watching whether this is a blip or the start of institutional cold feet. Either way, the crypto faithful will keep hodling—right up until their margin calls hit.

COIN put options in demand

The sell-off has traders chasing downside protection in COIN.

As of Friday, the one-year put-call skew, which measures the implied volatility (demand) differential between put and call options, ROSE to 2.6%, the highest since April 21, according to data source Market Chameleon.

In other words, put options, offering insurance against price losses in the underlying asset, traded at a 2.6 volatility premium to call options or bullish bets.