- Trump’s import tariffs sparked heavy stock market sell-offs, driving major indices and tech stocks like Coinbase sharply lower.
- Coinbase’s stock is down 50% from its peak, with crypto market weakness and bearish sentiment weighing heavily on investor confidence.
- Technical breakdown from the ascending channel suggests possible price support at $130 or even $100 in extended bearish conditions.
The announcement of a 10% baseline tariff on all imported goods by former President Donald Trump has shaken financial markets. The move has triggered widespread sell-offs across major indices. The S&P 500 posted its steepest weekly drop since June 2020, while multiple equities faced major pullbacks.
Coinbase (NASDAQ: COIN) has not been spared from the ongoing market turbulence. The company’s stock price has fallen by 50% from its December 2024 all-time high of $343.62. In just the past week, COIN lost 25% of its value, with its price currently hovering near $170.76. A 6.6% daily loss was recorded as investor confidence weakened further.
Crypto market downturn compounds Coinbase pressure
As a leading crypto exchange service Coinbase depends on the general digital asset market trends for its operational success. Substantial bearish pressures on altcoins as Bitcoin reaches $83,000 have led to depressed investor sentiment. Coinbase has experienced direct effects from falling trading activities which resulted in decreased revenue projections.
Market analysts have highlighted technical signals that suggest more losses may be ahead. A recent breakdown from an ascending price channel is viewed as a bearish signal. The pattern indicates that COIN may drop further, with support levels around $130 and $100 increasingly being watched by traders.
Investor attention shifts as gold surges during market uncertainty
The growing market uncertainties led investors to move their funds into traditional protected assets like gold, therefore driving up its market value. The investment community currently moves towards less risky products because they are more cautious about market risk which makes high-risk stocks such as Coinbase suffer.
Market instability undermines the possibility of a Federal Reserve rate cut even though experts had previously predicted such action would happen. The sustained market force downward towards COIN stock values prevents an immediate price recovery for the company.
