Shares of crypto exchange Coinbase Global (COIN) had their biggest single-day drop in over two years after its latest earnings missed analyst estimates amid a broader stock market decline.
Still, traders are confident that the stock will make a strong comeback in 2025.
On Oct. 31, COIN closed the trading day at $179.25, representing a 15.3% decline — its largest intraday drop since July 26, 2022, when the stock fell 21% amid a probe from the United States Securities and Exchange Commission.
COIN has seen a 1.43% rebound in after-hours trading. Source: Google Finance
“Q1 and Q2 earnings next year will be ridiculous,” crypto trader Pickle told their 16,100 X followers, while also saying, “everyone overblowing the Coinbase earnings call.”
On Oct. 30, Cointelegraph reported that Coinbase Q3 2024 earnings fell short of Wall Street analysts’ estimates by around 11%.
Traders show confidence in COIN performance
Pickle said, “Summer is the quietest period for all markets, crypto was chopping, and retail interest waned,” before forecasting that COIN is set for “$600.”
The exchange saw transaction revenues fall 27% quarter-on-quarter to $573 million — still, that was a 98% increase from Q3 2023.
Stock market commentator Geert Leysen pointed out that COIN’s price is still “above the trendline,” forecasting that the stock’s performance is a “play on the rise” of Bitcoin (BTC).
Source: Geert Leysen
Bitcoin was trading at $69,310, about 6.3% below its all-time high of $73,679 set in March. Traders are keeping a close watch on the upcoming United States election on Nov. 5, anticipating it could bring heightened volatility in either direction.
Meanwhile, pseudonymous crypto trader Cable finds it “wild” that COIN is still trading below its initial public offering (IPO) price of $250, the price at which the company went public in April 2021.
Oct. 31 was a tough day for the stock market overall, with financial analyst Andrew Lokenauth noting that “over $950 billion was wiped out from the market.”
MicroStrategy overtakes Coinbase market capitalization
Amid the stock market turmoil, traders recently took note of Michael Saylor’s MicroStrategy (MSTR) overtaking Coinbase in market capitalization.
Related: Coinbase CEO wants next SEC chair to apologize for ‘damage’ done
MicroStrategy holds a market cap of $49.5 billion, surpassing Coinbase’s market cap of $44.5 billion.
Bitcoin analyst Tuur Demeester recently told his 283,500 X followers that Coinbase vs. MicroStrategy “is a battle of two archetypes.”
“One is the fox who distracts himself with hundreds of strategies; the other is the hedgehog who knows One Big Thing. This is “crypto investing” versus “there is no second best,” Demeester wrote in an Oct. 9 X post.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.