COIN Sheds Nearly 20% in a Week, Logging Steepest Decline Since Late 2024

Coinbase Suffers Steepest Weekly Loss in Nearly a Year as Traders Seek Downside Protection

Coinbase (Nasdaq: COIN) shares plunged 19.6% last week to close at $314.69, marking their worst weekly performance since September 2024, according to TradingView data. The sell-off followed a disappointing second-quarter earnings release and growing concerns about the stock’s stretched valuation.

The crypto exchange reported earnings per share of just $0.12 for Q2, down nearly 89% year-over-year. Revenue came in at $1.5 billion, falling short of FactSet’s $1.59 billion estimate. EBITDA dropped to $512 million, with transaction revenue sliding 39% compared to the previous quarter.

The earnings slump aligns with a bearish call from crypto research firm 10x in June, which warned that COIN’s rally had run ahead of fundamentals and recommended shorting the stock while maintaining a bullish view on Bitcoin. H.C. Wainwright echoed this sentiment in early July, downgrading Coinbase to “Sell” from “Buy.”

Options Market Signals Growing Bearish Sentiment

The sharp decline in COIN has triggered a notable shift in the options market. Demand for put options—used to hedge against further losses—has surged. According to Market Chameleon, the one-year put-call skew climbed to 2.6% on Friday, its highest level since April, signaling a strong preference for downside protection.

The rising skew suggests investors are increasingly nervous about Coinbase’s near-term prospects, especially as regulatory and macroeconomic pressures continue to cloud the crypto sector’s outlook.