Coinbase experienced its worst quarter since the FTX collapse in November 2022, with a significant decline in its stock price. Starting at over $257 on January 2, 2025, Coinbase shares ended Q1 at just over $172, marking a 33% drop. Other crypto firms also reported substantial losses, with Marathon Digital Holdings losing over 37% and Riot Platforms down over 32%. The entire crypto market faces challenges attributed to recent geopolitical tensions and a volatile stock market, with the S&P 500 declining over 4.75% in the same period. Analysts indicate that uncertainty surrounding trade wars, driven by U.S. President Donald Trump, is impacting both traditional and crypto markets. Despite these difficulties, Coinbase announced projected transaction revenues of approximately $750 million through February 11 and an estimated first quarter profit of around $1.87 billion. As companies navigate the downturn, the overall sentiment remains cautious, reflecting the prevailing challenges in both crypto and stock markets.

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