Bitcoin News Today: Coinbase Shares Fall 15% Amid Crypto Market Slowdown and Revenue Decline

The crypto market's recent slowdown has hit Coinbase hard, with the exchange’s shares falling 15% on Friday following disappointing second-quarter results. The stock dropped to $321.68, the lowest level in over a month, with the selloff erasing approximately $14.3 billion in market value. Coinbase reported adjusted income of $33.2 million, a sharp decline from $294.4 million in the same period last year [1]. Analysts noted that the market had been projecting excessive future growth for the firm, contributing to the sharp correction [2].

The weak performance was linked to a significant drop in trading volume. With bullish sentiment driving traders to hold rather than sell, Coinbase’s primary revenue stream—trading fees—was severely impacted. This divergence from its usual volatility-driven model left the company with lower profits and raised concerns about its business sustainability in a stagnant market [1].

Meanwhile, Robinhood reported a near doubling of its crypto trading revenue in the same quarter, outperforming Coinbase despite having a smaller market presence. The contrast intensified the pressure on Coinbase to account for its revenue shortfall [1]. Some analysts believe the slowdown could be temporary, pointing to Coinbase’s July revenue estimates, which suggested a potential rebound. This was partly attributed to the Genius Act, which became law that month and sparked a new wave of optimism in the crypto space [1].

However, the immediate impact of the second-quarter miss was severe. Coinbase was the hardest hit among crypto-related stocks, with companies like Circle, Galaxy Digital, Bitmine Immersion, and MicroStrategy also experiencing declines. The broader market was further rattled by the introduction of a revised version of President Donald Trump’s “reciprocal” tariffs, which triggered a pullback in crypto assets. Ether, XRP, and Binance Coin all dropped 2%, and overnight liquidations on centralized exchanges reached $210 million for ether and $172 million for bitcoin [1].

Despite a strong July for both bitcoin and ether, the momentum has cooled. Trading volumes remain low, and volatility has returned, raising concerns about the sustainability of recent gains. ETF flows have also shown signs of strain. While ether ETFs pulled in $5 billion in July, bitcoin ETFs saw $114 million in outflows on the last day of the month, limiting net inflows to $6 billion for the period [1].

Sources:

[1] Crypto slowdown drags Coinbase down https://coinmarketcap.com/community/articles/688cf85ba088f1322943393c/