Coinbase (COIN) stock slipped this year, erasing over $38 billion in value as crypto woes intensify

After peaking at $350 in November last year, the company’s share prices plunged to $190, and technical patterns point to further downside.

Coinbase (NASDAQ:COIN) stock has erased more than $38 billion in value this year as the year progresses and the company's shares continue to slip.

After hitting a peak of $350 in November last year, the company’s stock price has crashed to $190, and technical patterns now point to further downside.

Crypto Prices Plummet In 2023

The year-to-date (YTD) performance of Bitcoin (BTC) and most other cryptocurrencies can be described as bearish.

Coinbase is highly exposed to the price movements of cryptocurrencies. It is no secret that the company's business booms when the prices of most coins rise and vice versa. For instance, Coinbase's revenue surged to $7.3 billion in 2021 as most coins soared and then crashed to $3.1 billion in the following year as Bitcoin crashed to $16,000.

Coinbase's full-year revenue for 2023 totaled $3.1 billion, which nearly doubled in 2024 to $6.6 billion.

Fortunately, Coinbase has diversified its business in the past few years, so transaction revenue is not the only source of income. The most recent financial results showed that transaction revenue was $1.5 billion in the fourth quarter, while its subscriptions and revenue were $641 million.

Its subscription and services revenue is growing quickly thanks to its stablecoin, blockchain rewards, custodial fees, and interest and finance fee income.

Coinbase is also seeking to grow its business in other areas. For example, Base, its layer-2 blockchain network, has become the biggest player in the industry. Protocols in the network handled over $22 billion in volume in the last 30 days and have over $3.1 billion in total value locked.

Coinbase is also in talks to acquire Deribit for between $4 billion and $5 billion. That acquisition would make it a big player in the booming derivatives industry.

Coinbase is also contending with increasing competition in the cryptocurrency industry. Most of this competition comes from international players like OKX, HTX, and Binance.

Coinbase Stock Price Is At Risk Of Further Downside

Wall Street analysts are optimistic about the COIN stock. The average estimate is that its annual revenue will grow 23.7% this year to $8.12 billion and $8.38 billion next year. These analysts expect Coinbase’s stock will rise to $318 from the current $189.

The daily chart shows that the Coinbase stock has formed two risky patterns that point to an eventual crash to $150. It has formed a bearish pennant pattern with its two triangle lines about to converge.

Image: TradingView

COIN is also about to form a death cross pattern, which happens when the 50-day and 200-day moving averages cross each other. Therefore, the stock is expected to have a strong bearish breakout in the next few weeks.

Coinbase was founded in June 2012 by Brian Armstrong and Fred Ehrsam. Armstrong currently serves as the CEO.