Coinbase shares dropped 33% in the first quarter of 2025, making it the company’s worst quarter since FTX collapsed in 2022. The stock opened the year at just over $257 and ended March at around $172. Despite this decline, Coinbase expects to report between $685 million and $765 million in subscription revenue, with analysts estimating total Q1 earnings at $1.87 billion.
Bitcoin has fallen more than 20% from its all-time high, and Ethereum has dropped over 45%. Crypto-linked stocks followed a similar pattern. Marathon Digital Holdings lost over 37%, Riot Platforms fell by 32%, and Bitfarms saw nearly half its value erased. Hut 8 dropped by almost 45%, Hive Digital Technologies declined by more than 50%, and mining hardware producer Canaan Creative lost 58.4%.
The broader stock market also struggled, with the S&P 500 index losing over 4.75% in Q1. Analysts attribute this to growing fears over U.S. President Donald Trump’s trade policies. Reports suggest traders are anticipating an announcement on April 2 regarding new tariffs, adding to economic uncertainty. Alex Obchakevich of Obchakevich Research said Trump’s tariffs are making the market unpredictable. Oppenheimer analyst Owen Lau pointed out that concerns about tariffs, a potential trade war, and recession fears are driving investors away from riskier assets, including cryptocurrencies.
Strategy (formerly MicroStrategy) was one of the few crypto-related stocks that held relatively steady, dropping just 3.95% from $300.11 to $288.27. Analysts say its Bitcoin holdings and strong 2024 performance helped prevent deeper losses.
Bitcoin hit a record high of over $109,000 on Trump’s Inauguration Day in January but has since dropped to around $83,000. The decline was partially driven by Trump’s recent announcement of a strategic Bitcoin reserve, which disappointed investors expecting greater government support.
Crypto stocks surged after Trump’s election victory but have since given up those gains. While the industry is gaining influence in Washington and moving closer to traditional financial markets, this has yet to translate into a recovery. Cryptocurrency analyst Connor Loewen said the market may need new catalysts to regain investor confidence, as the excitement seen earlier in the year is fading.
