Coinbase Global Sinks as Crypto Turmoil Meets Crackdown Risks

Coinbase Global ( (COIN) ) has fallen by -10.04%. Read on to learn why.

Coinbase Global shares slid 10.04% over the past week as a fresh bout of crypto volatility and rising geopolitical tensions drove investors out of riskier assets. A surprise pullback in digital currencies, including Bitcoin, followed President Trump’s threat of steep tariffs on several European countries tied to a dispute over Greenland. That shock rekindled risk-off sentiment just as billionaire investor Ray Dalio warned in Davos that the traditional monetary system is “breaking down,” prompting many global players to rotate further into gold and away from speculative trades like crypto-linked equities.

For Coinbase Global, the selloff comes at a time when CEO Brian Armstrong is using the World Economic Forum to pitch crypto “tokenization” as a way to modernize financial systems, even as short-term trading sentiment turns sour. The company’s fortunes are tightly linked to crypto market momentum, so the sector’s 3% market-cap drop over the weekend quickly translated into pressure on COIN stock and a jump in expected volatility. Options pricing now implies wide trading ranges ahead, reflecting fears that continued geopolitical shocks could further undermine the fragile crypto rebound.

Beyond macro jitters, Coinbase Global is also facing a key regulatory overhang that may be weighing on the stock. A major crypto bill headed for Senate review could limit or reserve stablecoin rewards programs for banks and licensed financial firms, threatening a lucrative revenue stream tied to USDC holdings on the platform. Stablecoin-related income is projected to reach around $1.3 billion in 2025, making any clampdown on rewards a material risk to Coinbase’s business model. Despite these headwinds, Wall Street still views the stock as a Moderate Buy with sizable upside, suggesting that investors who can stomach near-term turbulence may see the current pullback as a potential entry point.