Coinbase Stock Crashes 19% in Just 7 Days—Hits Rock Bottom Since Sept 2024

Another brutal week for crypto's poster child. Coinbase shares nosedive to levels not seen in nearly a year—just when retail investors thought it couldn't get worse.

What's bleeding COIN dry? The usual suspects: regulatory headwinds, crypto winter chills, and Wall Street's short-term memory. Remember when analysts called this the 'Amazon of digital assets'? Pepperidge Farm remembers.

Silver lining? Crypto's cyclical nature means every crash plants seeds for the next rally. But for now, traders are swallowing losses like overleveraged degens at a liquidation party.

Funny how stock prices mimic Bitcoin's volatility—except without the 10x upside potential. Maybe that's what happens when you marry TradFi infrastructure to crypto's rebel spirit.

Put Options Signal Growing Caution

As the stock dropped, more traders turned to put options to limit possible losses. These options serve as insurance. By Friday, the one-year put-call skew ROSE to 2.6%, the highest level since April. This means traders were paying more for put options than for call options, showing rising demand for protection.

Coinbase is now under pressure to show stronger results in the coming months. Trading volumes have dropped, and some investors are waiting to see if the company can recover. Others may view the dip as a possible buying chance, especially if crypto prices recover or if new products are launched. For now, the stock remains under close watch.

Also Read: Coinbase UK Ad Ban Sparks Crypto Debate, Says CEO Brian Armstrong