What Happened?

Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) fell 5.3% in the afternoon session after sentiment worsened in the broader crypto market, as Bitcoin fell more than 3%, putting pressure on related stocks. 

Also, Compass Point cut its price target on Coinbase to $230 from $266, while keeping its Sell rating. The firm noted that the company's fourth-quarter revenue was tracking approximately 5% below consensus estimates and expressed concern about a potential earnings miss.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Coinbase? Access our full analysis report here.

What Is The Market Telling Us

Coinbase’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 1.8% on the news that crypto linked stocks soared as sentiment in the crypto market improved, following MicroStrategy's disclosure that it purchased an additional 10,624 bitcoins for approximately $962.7 million. 

This acquisition, which marked its largest in several months, brought the company's total holdings to 660,624 bitcoins. The purchase was funded through the sale of company stock and reinforced its core strategy of holding Bitcoin as a primary treasury reserve asset. The move signaled the firm's strong belief in the long-term value of the cryptocurrency. This conviction was further highlighted when the company's CEO, Phong Le, stated there were no plans to sell its Bitcoin holdings until 2065, suggesting a commitment to hold through decades of potential volatility. 

Adding to the positive momentum, PNC Bank launched direct bitcoin trading for its private bank clients, powered by the Coinbase Crypto-as-a-Service platform. This move made PNC the first major U.S. bank to roll out such an offering, allowing its eligible clients to buy, sell, and hold bitcoin directly through their existing digital banking accounts. The partnership highlighted growing demand from wealthy clients and showed how traditional banks were using crypto infrastructure to enter the digital asset space. 

Adding to the positive news, Coinbase reopened registrations for users in India after a two-year pause, signaling a careful reentry into a major market. The company also expanded its trading options by launching spot trading for Plume and Jupiter and enabling round-the-clock trading for various altcoin monthly futures.

Coinbase is down 1.5% since the beginning of the year, and at $253.33 per share, it is trading 39.7% below its 52-week high of $419.78 from July 2025. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $771.70.

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