Coinbase Suffers Worst Weekly Drop Since Sept. 2024 as Traders Seek Downside Protection
Shares of Coinbase (COIN) plunged 19.6% last week to close at $314.69, marking the crypto exchange’s steepest weekly decline since September 2024, according to TradingView data.
The sharp sell-off followed the company’s disappointing Q2 2025 earnings report released Thursday. Coinbase posted net operating earnings per share of $0.12, reflecting an 88.8% year-over-year decline. Revenue came in at $1.5 billion—below the $1.59 billion expected by analysts surveyed by FactSet—while EBITDA dropped to $512 million as transaction revenue slid 39% from the prior quarter.
The decline aligns with a warning from crypto research firm 10x, which in late June argued Coinbase’s stock rally was outpacing fundamentals and advised a short COIN/long BTC strategy. Similarly, investment firm H.C. Wainwright downgraded COIN from Buy to Sell early last month, citing the Q2 run-up as excessive.
Options Traders Turn Defensive
In response to the downturn, traders have ramped up demand for downside protection. The one-year put-call skew on COIN options rose to 2.6% on Friday—the highest since April 21—according to Market Chameleon. This indicates put options, which hedge against price declines, are trading at a notable premium to calls, underscoring rising bearish sentiment.
