Bitcoin Stumbles, Coinbase Stock Tanks as Friday’s Market Blues Infect Crypto

Crypto catches Wall Street's cold as Bitcoin dips and Coinbase shares nosedive—another Friday freakout for the digital asset class.

When traditional markets sneeze...

The crypto contagion spreads faster than a DeFi exploit, proving once again that 'decoupled' assets still trip over macroeconomics. Traders scramble as Bitcoin's slide drags Coinbase stock down with it—because nothing says 'hedge' like getting double-whammied by correlated volatility.

Another week, another reminder that crypto markets still take their cues from the same old financial playbook—just with 10x the leverage and none of the circuit breakers.

Analysts Pull Back on Crypto-Stock Enthusiasm

A recent run of strong results for tech and other stocks could also simply mean investors are taking a breather. Retail investors, according to Vanda Research, have lately pulled back from the most-speculative stocks after a short-lived meme-stock frenzy. On crypto stocks specifically, some analysts have shifted to more wait-and-see attitudes; Morgan Stanley reiterated a "neutral" rating on Robinhood Thursday.

But some bulls are still running strong, noting recent regulatory wins and signs of future regulatory clarity that reinforce the belief that crypto's best days lie ahead.

Oppenheimer analysts on Friday trimmed their price target on Coinbase by a few dollars to $413, holding well above the Street's roughly $383 average. They called the latest pullback "an attractive buying opportunity" and generally characterizing Thursday's results as meeting expectations.

And Deutsche Bank on Thursday lifted its target on Robinhood to $118, which is $6 above the Street's average. "We believe our forecasts could actually be conservative given the potential upside from continued strong execution on [Robinhood's] product roadmap," they wrote.