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

Coinbase just took a nosedive worthy of a crypto winter flashback—down nearly 20% in its worst week since September 2024. Traders are sweating, but veterans know the drill: volatility is crypto’s middle name.

What’s fueling the fire? Macro tremors, regulatory deja vu, or just Wall Street playing whack-a-mole with tech stocks? Either way, it’s a reminder that even blue-chip crypto plays aren’t immune to gravity.

Pro tip: When exchanges stumble, smart money watches for accumulation opportunities. After all, nothing makes TradFi suits clutch their pearls like a good old-fashioned crypto correction.

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.