CryptoQuake: Coinbase Stumbles 10% Amidst Market Turbulence Despite Bitcoin Surpassing $45K

On Tuesday, MicroStrategy, under the leadership of Michael Saylor, experienced a notable upswing, defying the broader downward trend in the cryptocurrency market. Despite Bitcoin (BTC) demonstrating resilience in anticipation of a spot ETF decision, both Coinbase and bitcoin miners encountered significant setbacks.

Coinbase, a major player in the cryptocurrency exchange arena, faced its most substantial daily decline since mid-2023, presenting a sharp contrast to Bitcoin's climb to a 21-month high. Closing the day just below $157, Coinbase shares saw a substantial drop of 9.8% during the first trading session of the year, according data. This decline was a continuation of the profit-taking observed at the year-end, following an impressive nearly fivefold increase in the stock price throughout 2023.

Bitcoin miners, as represented by Marathon Digital (MARA) and Riot Platforms (RIOT), were unable to capitalize on the cryptocurrency's rally. Despite initial upward movements, they concluded the day modestly in the red, with losses ranging from 1% to 2% compared to Friday's closing and nearly 10% lower than their opening prices.

MicroStrategy (MSTR) emerged as an exception to the prevailing downtrend, securing a 7.9% gain on Tuesday, albeit closing below its early highs.

The decline in crypto stocks coincided with Bitcoin surpassing the $45,000 mark, a milestone not achieved since April 2022. Market participants exhibited heightened buying activity in anticipation of imminent U.S. regulatory approval for a spot BTC ETF. Analysts foresee the potential for significant expansion in the investor base following such approval, with estimates projecting over $14 billion in inflows within the first year, according to Galaxy.

As of the latest update, Bitcoin retraced from the day's highs, settling around $44,900, still reflecting a 3% increase over the past 24 hours.

A report from Singapore-based 10x Research on Thursday emphasized the perceived overvaluation of crypto stocks relative to BTC. Following their explosive gains in the last quarter, numerous crypto shares, including Coinbase, experienced substantial increases. Coinbase, for instance, witnessed a 150% rally from late October to a peak of $187 on December 27. Even with the recent downturn, the stock has maintained nearly a doubling in price over the last 10 weeks.

Read More: MicroStrategy Bolsters Bitcoin Reserves, Acquiring $600M in November, 10% Surge